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Market penetration strategies

Use Internet for:

•

 Market share growth – compete

  more effectively online

•

 Customer loyalty improvement – migrate

  existing customers online and add value

  to existing products, services and brand

•

 Customer value improvement – increase

  customer profitability by decreasing

  cost to serve and increase purchase or

  usage frequency and quantity

Product development strategies

Use Internet for:

•

 Adding value to existing products

•

 Developing digital products

  (new delivery/usage models)

•

 Changing payment models

  (subscription, per use, bundling)

•

 Increasing product range

  (especially e-retailers)

Use Internet for targeting:

•

 New geographic markets

•

 New customer segments

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Chapter 5  Digital business strategy

Existing products can also be sold to new market segments or different types of 

customers. This may happen simply as a by-product of having a website. The Internet 

may offer further opportunities for selling to market  sub-  segments that have not been 

previously targeted. Many companies have found that the audience and customers of their 

website are quite different from their traditional audience, so this analysis should inform 

strategy.