n The direction perpendicular to the fore-and-aft line¬

Niche B C

This model is a direct-to-consumer business that has a highly targeted service. This could include products for people living with a specific disability

Aligning with Your Business Strategy Aligning with Your Business Strategy ³³³³

or products to ultra-high-net-worth individuals. Whilst this model also appeals directly to consumers, it works with a specific niche such as those in a specialist trade or ultra-high-net-worth individuals. Using broadcast media is not relevant in most of these scenarios as the majority of the viewers will not be potential customers. Creating trust and advocacy is essential, however, so a deep content strategy and first-class experience are crucial to success.

B B B B

The B2B model includes organizations such as wholesalers or technology resellers that are selling directly to other businesses. Here you are dealing with other business people rather than end consumers. These business people are of course still individuals and it is important not to forget that human psychology still applies. They do, however, have very different expectations. You may be seen less as a brand and more as a supplier, which creates a very different relationship. Your customers may be more cynical or aggressive than B2C customers as they have specific objectives and goals to achieve. You may find that traditional marketing messages and sales techniques are less well received. Therefore the focus should be more on relationships through CRM, content and direct value-added discussions rather than through advertising. It is still important, however, for these customers to be able to find your site and the information they need to get to.

Within these broader business models there are of course many specific models. A B2B IT company may be a hardware product provider or a service support provider. The service model would require more of a focus on screen sharing and CRM whilst the product model would require more of an acquisition and conversion focus. A B2C model may be simply to sell products at a significant margin or simply to gain traffic in order to make advertising revenue.

Freemium Freemium

One interesting trend in business models in recent years is the freemium model. This model has grown in popularity and is essentially the method of attracting users by giving a percentage of your product or service for free and offering a more interesting, deeper experience for a price. A good example of this is the music-streaming industry with businesses such as Spotify and Deezer employing this technique. One other point here is that business models can shift and shape over time. There are many examples of this such as IBM, but there are also some more recent changes in the digital space.

Digital Marketing Digital Marketing StrategStrategyy

34 34

Facebook

Facebook is a great example of a

Facebook is a great example of a business model that has had to adaptbusiness model that has had to adapt quickly

quickly. I would imagine that even Mark . I would imagine that even Mark Zuckerberg was surprised by theZuckerberg was surprised by the speed at which Facebook grew from being

speed at which Facebook grew from being one of many college socialone of many college social networks to the leading global hub for

networks to the leading global hub for a significant percentage of thea significant percentage of the world to share their lives on. The

world to share their lives on. The initial model of providing a network forinitial model of providing a network for college students had to develop a broader appeal

college students had to develop a broader appeal once the growth becameonce the growth became inevitable. As this growth took hold it was clear that costs would also inevitable. As this growth took hold it was clear that costs would also accelerate and, with no obvious income, something had to

accelerate and, with no obvious income, something had to be done and sobe done and so the business pages and adv

the business pages and advertising models had to ertising models had to be developed. Thesebe developed. These shifts in the way that the business has had to change

shifts in the way that the business has had to change to deal with its ownto deal with its own growth have been both significant and impressive in their speed and success.

growth have been both significant and impressive in their speed and success.

This is an excellent example of how adapting your

This is an excellent example of how adapting your strategy to meet thestrategy to meet the changing needs of your consumers and

changing needs of your consumers and the evolution of your business isthe evolution of your business is vital. Facebook has had to do this through the above changes to their website vital. Facebook has had to do this through the above changes to their website and user experience. We will look at this area in

and user experience. We will look at this area in more detail in Chapter 9.more detail in Chapter 9.

Google

It is hard to believe that Google spent a

It is hard to believe that Google spent a long time with no real incomelong time with no real income channel. The initial business model was successful by creating the best channel. The initial business model was successful by creating the best search engine in terms of accuracy and

search engine in terms of accuracy and simplicitysimplicity. Google became a verb. Google became a verb as people realized that googling something would give better results than as people realized that googling something would give better results than using another engine. However

using another engine. However, a source of income needed , a source of income needed to beto be developed. This is why Adwords was introduced in 2003 and that has developed. This is why Adwords was introduced in 2003 and that has gonegone on to become the foundation of

on to become the foundation of the growth of every other arm of the growth of every other arm of thethe Google we know today – a

Google we know today – a business with an incredibly diverse andbusiness with an incredibly diverse and profitable range of services. This has led to

profitable range of services. This has led to Google having to closelyGoogle having to closely manage its brand and how

manage its brand and how it is perceived, which it has done withit is perceived, which it has done with significant success. Their digital marketing strategy has

significant success. Their digital marketing strategy has been a minimalistbeen a minimalist approach. They promote their service and products such

approach. They promote their service and products such as Adwords andas Adwords and Chrome through display advertising and CRM but they do

Chrome through display advertising and CRM but they do not broadcast asnot broadcast as much as most organizations of a similar size. This is because much much as most organizations of a similar size. This is because much of theirof their success is through word of mouth. This networking approach has

success is through word of mouth. This networking approach has beenbeen encouraged by supporting businesses that use their products, through encouraged by supporting businesses that use their products, through strong and personalized customer service, networking and learning events strong and personalized customer service, networking and learning events and training materials. This personalized and deep-content digital

and training materials. This personalized and deep-content digital marketing has ensured that people have trust, belief and understanding of marketing has ensured that people have trust, belief and understanding of their products, which furt

their products, which further encourages word of mouth.her encourages word of mouth.

Changing business models

Aligning with Your Business Strategy Aligning with Your Business Strategy ³⁵³⁵