WELCOME

TO GROUP 3
Online marketplace analysis
Micro-environment
Table of contents:
Introduce to digital marketing environment

Customers

Competitors

Suppliers, publishers, intermediaries

and influencers
Business and revenue models enabled by
digital markets

Case study
Situation Analysis for Digital Marketing
Understanding an organisation’s environment is a key part of
situation analysis: “Collection and review of information
about an organisation’s internal processes and resources
and external marketplace factors in order to inform strategy
definition”
Situation analysis should focus on:
Customer Analysis – Digital marketing propositions and communications should be based
around the customer – their characteristics, technology usage, behaviours, needs and wants.

Marketplace Analysis – This involves identifying and reviewing the main online influences on
purchase behaviour on purchasing behavior, and also reviewing opportunities and threats from
digital media and technology.

Competitor Benchmarking – Evaluating direct and indirect competitors to identify

opportunities for new approaches and digital marketing activities that need to be improved.

Macro-environment Factors – Reviewing social, political, legal, economic, and technological

influences.

Internal Review – Reviewing a company’s digital marketing performance through KPIs and
dashboards, along with its capabilities and processes, to identify strengths and weaknesses.
The Digital Marketing
Environment
Micro-environment – The players (actors) and
their interactions (customers, competitors,
suppliers, and digital intermediaries), which
influence how an organisation responds in its
marketplace.

Macro-environment – Broad forces affecting all

organisations in the marketplace (beyond a
company’s control), including social,
technological, economic, political, legal and
ecological influences.
 Key concepts:
ONLINE MARKET ECOSYSTEM:
Big tech companies like Facebook, Apple,
Microsoft, Google, and Amazon (FAMGA) have Interactions between different online
built and continue to evolve their own online systems related to a specific hardware or
market ecosystems to connect with users. software technology, which may be
These platforms use digital marketing tools like independent or developed by a particular
audience targeting, data analysis, and brand.
automation to enhance customer experience
and expand their influence.

For example, Facebook’s APIs help businesses

create audience profiles and run marketing
campaigns. FAMGA also develops mobile and
smart home devices, creating new ways to
reach customers.
GOING TO THE SHOPS
Digital world
Digital touchpoint
 With digital technology
everywhere ....
Customers no longer rely on
ly on physical
stores.

Customers are influenced by

social media,
websites, influencers, and a
ds before, during,
and even after buying some
thing.
 How exactly do customers
interact with digital markets?
An example of
a customer
journey map
Journey to buy a donut
Awareness
1. See donuts ad on social media
2.Search for more information about
donuts

Top doughnut shops in Hanoi

Keywords Best bakery near me

Journey to buy a donut
Consideration

See Bongbaker’s ads on Facebook running

a special promotion only available for the
first month of New Flavor Launch

Customer keep seeing Donut ads on

Facebook or Instagram reminding them of
the product.
Journey to buy a donut
Purchase
Bongbaker sends promotional offers
to customers via SMS.

> 150K 1 FREE

CTA
Journey to buy a donut
Experience product
On-pack promotion: QR code =>special
discount/a fun donut-themed AR filter

CRM Subscription
"Join our VIP list & get 10% OFF your
next order! Sign up now!"

Loop closed
A unique referral link(URL)—if a friend
buys, both get 10% discount next
visit!
An online
marketplace map

summarises how target

customer segments
might be influenced by
different types of digital
sites.
Search types

Generic search:
“best bakery near me"

Product-specific search:
"chocolate cake with
strawberries"

Brand search:
"BongBaker chocolate
cake"
Customers
 CUSTOMER ANALYSIS
y p e o f a n aly sis in vo lve s
In digital m ar k e t s, t h is t
s , m ed ia co ns u m p tio n
in to th e m o tiv a t io n
research es s e s us e d b y
c e s a n d s e le c t io n p r o c
prefer en t o ge th e r w ith
h e y u s e d ig ita l c h an n e ls
consumers as t ts an d
p u r ch a s e o nlin e p ro d u c
traditiona l c h a n n e ls to
h er o n lin e se rv ic es .
use ot
Demand and gap analysis
E.G. LEAD GENERATION AND
SALES

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
Demand analysis:

Determines how many DEMAND

potential customers are AND GAP
interested in a
product/service online +
ANALYSIS
uses data like Google
searches, website traffic, and
social media interactions to
estimate market demand.
Demand analysis:

For example, if bongbaker sees

100,000 monthly Google searches
for 'good donuts' but only receives
5,000 website visits. This means
she is not fully capturing the
market demand
 In order to do this the digital marketer

WHAT?
also needs to assess the volume and
share of customers who:
Have access to the digital channel

Use specific online services that may

affect the purchase decision (such as
price comparison sites, social networks
and specialist blogs)

Are influenced by using the digital

channel but purchase using another
channel as part of the multichannel
buyer behaviour

Purchase or use other services using

the digital channel
Gap analysis:
Compares potential customers with

DEMAND
actual buyers to identify gaps in the
conversion process + determines where
the business is losing potential
AND GAP
ANALYSIS
customers and what can be improved

Example: 5,000 website visitors, only 100

make a purchase → 2% conversion rate.
If average industry conversion rate = 5%.
→ The company is underperforming. The
"gap" is 3% of lost potential customers.

→ Improvements are needed in website

design, product descriptions, checkout
process, or marketing messages.
 Conversion models
Conversion marketing: Using marketing
communications to maximize conversion
of potential customers to actual
customers. Conversion marketing tactics
can be used to convert as many potential
site visitors into actual visitors and then
convert these into leads, customers and
repeat customers
Conversion modelling is complex - need to analyse
both online and offline behaviour
Example: You use Google Ads to promote but
+ some shoppers will buy online
+ some prefer to use other channels
+ some love buy in store
-> the importance of multichannel conversion models

MULTICHANNEL
CONVERSION
MODELS
 MODELS
SHOWING
CONVERSION
BETWEEN
THE DIGITAL
CHANNEL VS
TRADITIONAL
CHANNELS
 KEY
INSIGHTS
- Traditional have a higher response and
conversion rate than E-channels
- E-channels attract more users but
converts fewer to sales
- Traditional generate significantly more
sales
- Cross-channel influence in every stages
- Opportunities to optimize e-channels:

Increase visitor engagement to

improve response efficiency
Better web design, target market to
enhance lead conversion rate
Simplify checkout process, increase
trust to optimize sales
 Digital consumer behavior

A marketer wants to
understand the needs,
characteristics and
digital experiences or
behaviours of target
consumers which is
also known as
customer insight
Create customer segments
 Consumer choice and digital influence
Consumer choice and the subsequent decision making are crucial to the purchasing
process (online and offline) but digital media (and especially Mobile digital media) now
plays an increasingly important role in buying decisions.

Many buyers visit online first to find information that will inform what they buy, so the web
and social media are:

+ Vital part of the research process, as Internet users now spend longer researching
products online;
+ Used at every stage of the research process from the initial scan to the more detailed
comparison and final checking of specifications before purchase.

The result of this change in behaviour means that buyers are more informed, and refer to
a multiplicity of sources to find information that will inform their final purchasing decision.
 Consumer choice and digital influence
To stay competitive, As digital channels
companies must: continue to grow, the
Maximize the value of demand for reliable
positive comments product information will
and reviews. increase
Ensure product quality -> It is important to
and excellent service. ensure that products and
Improve their services are well-
presence on both represented in the digital
offline and online channels used by target
platforms. customers.
 Customer characteristics
Traits and personality markers that can affect the behaviours,
experiences and purchasing decisions of customers
Customer characteristics

Demographic variables

Behavioral variables

Psychographic variables
 Segmentation
Demographic Behavioral Psychographic
type

Main question about

Who they are? What do they do? Why do they do it?
customer

Age Frequency of purchase Social status

Gender Average purchase Personality traits
Income amount Lifestyle
Education Brand loyalty Values and beliefs
Occupation Frequency of product / Interests and hobbies
Marital status service usage Attitudes and opinions
Family size Buyer journey stage
Key criteria for Ethnicity Stage of the consumer
segmentation lifecycle
Engagement level
 Other concepts
Information processing (IP)

Perceived ease-of-use

Perceived usefulness

Perceived benefits

Perceived control

Skill

Trust and risk

Enjoyment
These antecedents can influence how the customer thinks (cognitive state) and
feels (affective state) about their online experience and affect the outcomes of
any subsequent behaviour
 Consumer personas
Fictional profiles that represent a particular target
audience

create more relevant communications

develop more effective customer-centered

online strategies
 The buying process

Kotler et al, 2008 Digital market

awareness problem recognition

interest information search
evaluation evaluation
trial decision
adoption action
post purchase
 The
buying
process
with the support of
the Internet
Competitor
The shape and nature of
online competitive market
Bargaining power of buyers

Bargaining power of suppliers

Threats of substitute products and services

Threat of new entrants

Intensity of rivalry
Impact of the Internet on 5 competitive forces

Bargaining power of buyers : Bargaining power of suppliers :

Online buyers have more When an organisation purchases,

options and better price the bargaining power of its
transparency, which pushes suppliers is reduced since there
prices down. is a wider choice and increased
commoditization due to e-
In B2B, digital connections with procurement and e-
customers can strengthen marketplaces.
relationships and make
switching providers harder, The reverse arguments regarding
creating a "soft lock-in." bargaining power of buyers
Threat of substitute products
Threat of new entrants: Intensity of rivalry:
and services:
Barriers to entry are reduced, The internet encourages
Substitution is a significant enabling new competitors, commoditisation, which makes
threat since new digital particularly for retailers or service it harder to differentiate
products can be readily organisations that have products.
introduced. The introduction traditionally required a high-street Rivalry becomes more intense
of new substitute products presence or a mobile sale force. as product lifecycles
and services should be New entrants must be carefully decrease and lead times for
carefully monitored to avoid monitored to avoid erosion of new product development
erosion of market share. market share. Internet services decrease. The internet
are easier to imitate than facilitates the move to the
Internet technology enables
traditional services, making it global market, increasing the
faster introduction of
easy for “fast followers” number of competitors
products and services.
 Competitor Benchmarking
Competitor benchmarking c
ompares
digital marketing to rivals to
find strengths,
weaknesses, and opportunitie
s, helping
businesses improve and enh
ance
customer experience.
Competitor analysis and ben
chmarking are
crucial in digital marketing be
cause
technology changes quickly.
Benchmarking can be viewed
from several perspective
...
 1. Internal vs External: Compare internal
resources, structure, and processes with

HUH?
customer-facing features on competitor
websites.

2. Customer Lifecycle: Analyze competitor

performance at different customer journey
stages, like paid and organic search marketing.

3.Qualitative vs Quantitative: Compare

customer feedback from surveys with data on
traffic, costs, conversions, sales, and retention.
4. In-sector vs Out-of-sector: Compare industry
competitors and advanced sites like publishers and
social networks.

5. Financial vs Non-financial: Assess profits and

revenue alongside innovation, resources, and
learning.

6. User Experience vs Expert Evaluation: Consider

customer reviews and expert assessments of site
usability and effectiveness.
Competitor benchmarking elements to review across the RACE planning framework
Competitor benchmarking elements to review across the RACE planning framework
(cont.)
Competitor benchmarking elements to review across the RACE planning framework
(cont.)
Competitor benchmarking elements to review across the RACE planning framework
(cont.)
Suppliers, publishers,
intermediaries and
influencers
 SUPPLIERS

Suppliers provide the goods and

services a business needs to operate.

In the digital world, supply chains

can look different depending on
whether products are physical or
digital.
 INTERMEDIARIES

The marketing intermediaries are

companies that help businesses
promote, sell, and distribute their
products or services to final buyers.
Before landing on a final website, users
may pass through intermediaries
Mainstream media
 Nich media/
Social networks
 Aggregators &
super-affiliates
Small affiliates & blogs
 In digital marketing...

Online intermediary
Destination sites:
sites:
Apple’s online store
Shopee
Nike’s official
website
Tiktokshop
Why do intermediaries matter?
WHY ? Because...
Intermediaries are powerful
because they control visibility.

Most brands instead of selling

on their own websites they
use intermediaries platforms
because of the traffic they
provide.
WHAT IS NEW CHANNEL STRUCTURES ?

“The way a manufacturer or selling

organisation delivers products or
services to its customer”
 Disintermediation Reintermediation
The creation of new
The removal of intermediaries intermediaries between
such as distributors or brokers customers and suppliers
that formerly linked a company providing services such as
to its customers. supplier search and product
evaluation.
(a) the original situation

(b) disintermediation

(c) reintermediation or
countermediation
Publishers, electronics
intermediaries sites
and Influencer
modern types of
intermediaries
 Online publishers/media sites...
can provide different services for a business
to reach target audiences using:

Paid media Earned media

Owned media
 Electronic intermediaries sites

Online stores E-commerce

sites
Auction sites
 Influencers
someone who affects or changes the way that other people behave
Business and revenue
models enabled by
digital markets
Digital business models for e-commerce

1. The Business Model Canvas

by Osterwald and Pigneur (2010)

Value proposition Channels Resources

Customer segments Key Partners Cost structure

Customer
relationships Activities Revenue stream
 2 . Online business model
A summary of how a company will
generate a profit – identifying its core
product or service value proposition,
target customers in different markets,
position in the competitive online
In digital markets, companies should marketplace or value chain and its
experiment with different revenue projections for revenue and costs.
strategies and adapt to market
changes to maintain a competitive
advantage and attract investment.
3. Alternative perspectives on
business models

Marketplace position perspective

Revenue model perspective

Commercial arrangement perspective

Revenue Models:
Describe methods of generating income
for an organisation

For existing companies, MOSTLY based

upon the income from sales of
products/services.
Digital option for generating revenue:
Manufacturer sell Advertising space or
sell digital services that not previously
possible.
A - DIGITAL PUBLISHER & INTERMEDIARY
REVENUE MODELS

1. CPM
2. CPC
3. Sponsorship of site sections
or content types
4. Affiliate revenue
 CPM
( display advertising on site)

The cost to the advertiser when

COST - PER - an ADS is served 1000 times
THOUSAND
 CPC
advertising on site (PAY-PER-CLICK text ads)

Advertisers are charged not simply

COST PER CLICK the numer of times ads displayed,
The cost to the advertiser but according to the number of
of each click of a link to a
times they’re clicked upon.
third-party site
 Sponsorship of site sections or content types
(typically fixed fee/period)

COST PER

A company can pay to ACQUISITION/ACTION

advertise a site channel or

section
Ex: Adidas x Sports Section
on BBC
 Affiliate revenue
(CPA, could be CPC)

COST PER
ACQUISITION/ACTION
Affiliate revenue is
commission based

Ex: Shopee x Tiktok

The cost to the advertiser for
Affiliates
each outcome such as a lead
or a sale generated after a click
to a third-part site.
B - FORCASTING REVENUE FOR AN ONLINE BUSINESS
Maximise revenue will be based on these factors:

Number and size of ad units

Capacity to sell advertising
Ad fee levels
Traffic volume
Visitor engagement
CASE STUDY
CASE STUDY
Target customer
Individual Consumers Business Customers

Students (9-18): Despite having E-commerce platforms such

limited financial resources, as TikTok Shop, Shopee
students purchase snacks
frequently due to their snacking Supermarkets & grocery
habits stores across northern
Vietnam
Families with children (25-35):
Parents looking for safe and Beverage businesses looking to
hygienic snacks for their kids offer snacks as an add-on for
customers
Office workers (18-27): Those
who need convenient snacks for
their mid-day breaks
COMPETITOR
DOMESTIC COMPETITORS

ABI Trading & Manufacturing Co., Ltd.:

Specializing in various flavored rice paper
snacks.
Kido Group: Owner of popular snack
brands like "Chitato" and "Oishi".
Small wholesale snack shops: Examples
include Tlfood Shop, YOYO Snacks, etc.

FOREIGN COMPETITORS

Imported Chinese snacks, which are widely

available in the market.
Why did Ba Tuyet choose
Tiktok Shop?
How did Ba Tuyet identify her target customers?
The concerns of parents regarding street snacks, which are often
seen as unhygienic and unsafe
Transparently showcasing her production
process, increasing trust among parents
while maintaining youth appeal
Leveraging TikTok’s Digital Tools for Precise Customer Targeting

For You Page (FYP) Lookalike

TikTok Pixel
Algorithm Audiences
Bà Tuyết’s TikTok Sales Strategy:

How It
Outperforms
Traditional
Stores
01.
Total revenue: Nearly 600 billion VND
Total sales: Nearly 4 million orders

02. PSA CAMPAIGN

Increasing product sales at a lower cost per
action and optimizing return on ad spend
Return on ad spend (ROAS) of up to 8.9x
Conversion rate (CVR) of over 3.8%
A sevenfold (7x) increase in gross merchandise
value (GMV)
PSA ads were displayed more than 39 million
times on the TikTok Shop
CVR
AFFILIATE MARKETING
Number of affiliate videos: 1.17K videos
Revenue from affiliate videos: 9,44 BILLION VND
Bà Tuyế t's videos relatable, humorous content
that aligns with trending topics. Each video
includes an affiliate link.
Every video attracts millions of views, with a
purchase conversion rate (CVR) exceeding 3.8%.

Number of affiliate creators (KOLs,

Influencers): 940 creators
Collaborates with high-profile KOLs,
especially those in the food and product
review space.
Create unique content that aligns with their
personal style.
>> Partnering with KOLs helps expand brand
awareness to a diverse customer base,
boosting brand recognition.
 LIVESTREAMING
Total livestream sessions to date:
45.37K sessions
Livestream sessions feature
special promotions such as deep
discounts, free gifts, and exclusive
combo deals.
>> Bà Tuyêt’s livestreams
consistently attract hundreds of
thousands to millions of views,
generating a large volume of orders
per session.
Participation of KOLs in
Livestreams: Notable KOL guests
include Phạm Thoại, Quỳnh Trương,
and others.
How Ba Tuyet Outperformed
Competitors ?
 FACTOR ABI SNACKS ĂN CÙNG BÀ TUYẾ T COMPETITIVE ADVANTAGE

MAIN PLATFORM Tiktok Tiktok + Facebook + Affiliate Wider reach

Trend-given, engaging,
VIDEO CONTENT Product showcases More viral potential
strorytelling

SALES STRATEGY Direct sales Affiliate + Influencer marketing Better organic reach

Behind the scenes production

TRANSPARENCY Limited production insight Higher trust
videos

Frequent livestreams &

CUSTOMER INTERACTION Basic comment replies Stronger community connection
engagement

PROMOTIONS Direct discounts Referral-based incentives Encourages customer advocacy

KOL COLLABORATIONS Limited Strong influencer partnerships Higher brand awareness

VIRAL HASHTAGS Minimal #Ancungbatuyet (31,000+ posts) Higher brand exposure

CREATIVITY Repetitive content Constantly adapting to trends More engaging for audiences
 THE SUCCESS OF BA TUYET SNACKS THROUGH
SMART UTILIZATION OF DIGITAL ELEMENTS
The success of Ăn Vặt Bà Tuyế t on TikTok is not only attributed to high-quality products but also to a well-
executed digital business strategy. Effectively leverages key microenvironment factors.

Understanding the Target Customers: Leveraging the Digital Market Landscape:

Identifies its potential audience on Not just an entertainment platform but also a powerful
TikTok: young consumers, price-sensitive sales channel.
shoppers, and busy homemakers. Utilizes the viral potential of short videos.
Capitalizes on trend-driven shopping Effective Use of Digital Tools:
behaviors. TikTok advertising (PSA - Product Shopping Ads) to
Analyzing Competitors: optimize ad spend and increase conversion rates (CVR up
Conducts analysis of competitors’ to 3.8%, GMV growth by 7x).
marketing strategies to optimize content Affiliate marketing
and customer engagement methods. Choosing the Right Digital Business Model:
Short-form affiliate videos and KOL/KOC collaborations.
Building a personalized and relatable
Livestream sales, flash sales, and exclusive promotions.
brand identity through authentic
storytelling videos.
Thank you for your attention!