Essentials For Market EntryFirm`s brand name

Management`s Strength`s

Operational Strength`s

Capital resources

Types Of Market Entry Strategies FOR NEW FIRMSFirst Movers Alliances

FOR EXISTING FIRMSFast FollowersBrand Extender

First MoversEntering first into the marketTaking the advantages of user awareness

followed by consumer transactions & experiences then grow brand strength

Eg amazon.com ebay.com etrade.com

Concept – First MoversFirst movers experience short lived monopolyThey then become the only providers for few

monthsDuring that period competitors come in the market

as entry cost is lowTo prevent new entrants in the market , first movers

need to advertise aggressivelyObjective is building brand (site) awarenessMajority of the marketing budget is spend on high

visibility advertising in mass media to strengthen brand

Brand strengthening will create less chances of customers to pay the switching cost

Limitations Of First Mover`sLack of trust & loyalty

Lack of financial depth

Lack of Brand reputation

Production facilities needed to meet customer demands once the product succeeds

Site visits do not translate into purchase

AllianceTo ally themselves with established firms(Firms having established their brand names ,

production & distribution facilities , financial resources need to launch a business )

Eg Brainplay an e-tailer of children`s goods entered into alliance with KB toys unit to form new online presence called Kbkids.com

Fast FollowersUsing existing brand name to expand or enter

market

Eg Barnes & Noble , world`s largest book retailer , formed barnesandnoble.com after the success of amazon.com

Brand ExtenderMixing of online branding with offline storesAlready having the advantage of existing

brand and relationshipBrand extenders do not separately set up

online stores rather but instead integrate with online firms

Eg Walmart

E-CRMCustomer relationship is the next step once

the company enters into the marketPublic relations and advertising media vital

for establishing relationshipThree important techniques for E-CRM are :

Permission MarketingAffiliate MarketingViral Marketing

Permission MarketingMarketing strategy in which companies

obtain permission from consumers before sending them information or promotional messages

Sending information helps in developing relationship with customers

When consumers agree they are opting in and when consumers do not agree they are opting out

Eg companies asking for email from customers

Affiliate MarketingAffiliate adds link to the company`s website

on its own site and encourage its visitors When one website agrees to pay another

website a commission for new business opportunities it refers to the site

Also it can be upon the number of clicks , flat fees , or combination of both

E.g. Ebay`s affiliates program pays $4 for each visitor who become a registered user

Viral MarketingProcess of getting customers to pass along a

company`s marketing message to friends , family and colleagues

Online version of word of mouthE.g. half.com is using the strategy by giving $5

to the person when his friend , family , colleague spends $10 on first order

(People are asked to give the name and email address for the friends and relatives whom they want to tell about the site)

Brand LeveragingUsing the power of existing brand to acquire

new customers for a new product or service

Eg Tab was the first to introduce diet cola drinks , Coka-Cola ultimately succeeded in dominating the market by leveraging the coke brand to a new product called Diet Coke