E-Marketing, 3rd editionJudy Strauss, Adel I. El-Ansary, and Raymond Frost doc

Overview of the E-Marketing Planning ProcessCreating an E-Marketing Plan The Napkin Plan The Venture Capital E-Marketing Plan A Six-Step E-Marketing Plan Step 1—Situation Analysis Step 2

E-Marketing, 3rd edition

Judy Strauss, Adel I El-Ansary, and Raymond Frost

Chapter 3: The E-Marketing Plan

© Prentice Hall 2003

Overview of the E-Marketing Planning Process

Creating an E-Marketing Plan

The Napkin Plan The Venture Capital E-Marketing Plan

A Six-Step E-Marketing Plan

Step 1—Situation Analysis Step 2—Link E-Business with E-Marketing Strategy Step 3— Formulate Objectives

Step 4—Design Implementation Plan to Meet the Objectives

Step 5—Budgeting Step 6—Evaluation Plan

Overview

Overview of the E-Marketing Planning Process

 How can information technologies assist

marketers in building revenues and market share or lowering costs?

 How can firms identify a sustainable

competitive advantage with the Internet when so little is understood about how to succeed?

Overview of the E-Marketing

Planning Process

 The best firms have clear visions that they translate,

through the marketing process, from e-business objectives and strategies into e-marketing goals and well-executed strategies and tactics for achieving those goals

 This marketing process entails three steps:

Overview of the E-Marketing Planning Process

Creating an E-Marketing Plan

The Napkin Plan The Venture Capital E-Marketing Plan

A Six-Step E-Marketing Plan

Step 1—Situation Analysis Step 2—Link E-Business with E-Marketing Strategy Step 3— Formulate Objectives

Step 4—Design Implementation Plan to Meet the Objectives

Step 5—Budgeting Step 6—Evaluation Plan

Overview

Creating an E-Marketing

Plan

 E-marketing plan: It is a guiding, dynamic document that links

the firm’s e-business strategy (e-business model) with

technology-driven marketing strategies and lays out details for plan implementation through marketing management.

direction of the firm, allocate resources, and make tough

decisions at critical junctures.

P

Legal - Ethical Technology Competition Other factors

E-Business Strategy/

Implementation Marketing Mix/CRM

Overview of the E-Marketing Planning Process

Creating an E-Marketing Plan

The Napkin Plan

The Venture Capital E-Marketing Plan

A Six-Step E-Marketing Plan

Step 1—Situation Analysis Step 2—Link E-Business with E-Marketing Strategy Step 3— Formulate Objectives

Step 4—Design Implementation Plan to Meet the Objectives

Step 5—Budgeting Step 6—Evaluation Plan

Overview

The Napkin Plan

a napkin over lunch and then run off to find financing

 The big company version of this is the just-do-it An employee has an idea, and convinces management to just do it

necessary but they are not recommended when substantial

resources are involved Sound planning and thoughtful

implementation are needed for long-term success in business.

Overview of the E-Marketing Planning Process

Creating an E-Marketing Plan

The Napkin Plan

The Venture Capital E-Marketing Plan

A Six-Step E-Marketing Plan

Step 1—Situation Analysis Step 2—Link E-Business with E-Marketing Strategy Step 3— Formulate Objectives

Step 4—Design Implementation Plan to Meet the Objectives

Step 5—Budgeting Step 6—Evaluation Plan

Overview

The Venture Capital E-Marketing Plan

 Small to mid-sized firms and entrepreneurs with start-up ideas

usually begin with a napkin plan without going through the entire

traditional marketing planning process

 BUT as the company grows and needs capital, it has to put together a comprehensive e-marketing plan

- Most of the time, it is equity financed,

- Private funds (friends and family),

- Angel investors,

- Venture capitalists.

The Venture Capital E-Marketing Plan

 Investors are looking for a well-composed business plan, and more importantly, a good team to implement it

 The business plan should contain enough data and logic to prove that:

 The e-business idea is solid,

The Venture Capital E-Marketing Plan

 9 questions that every business plan should

answer:

1. Who is the new venture’s customer?

2. How does the customer make decisions about

buying this product or service?

3. To what degree is the product or service a

compelling purchase for the customer?

4. How will the product or service be priced?

The Venture Capital E-Marketing Plan

 9 questions that every business plan should

7. How much does it cost to produce and deliver

the product or service?

8. How much does it cost to support a customer?

9. How easy is it to retain a customer?

The Venture Capital E-Marketing Plan

 VCs look for a way to get their money and profits out of the venture within a few years:

- The golden exit plan is to go public and issue stock in an initial public offering (IPO),

- As soon as the stock price rises sufficiently, the VC cashes out and moves on to another investment

 All VCs’ investments are not successful But if even one out of 20 is an Amazon.com, the risk was well worth the reward

Overview of the E-Marketing Planning Process

Creating an E-Marketing Plan

The Napkin Plan The Venture Capital E-Marketing Plan

A Six-Step E-Marketing Plan

Step 1—Situation Analysis Step 2—Link E-Business with E-Marketing Strategy Step 3— Formulate Objectives

Step 4—Design Implementation Plan to Meet the Objectives

Step 5—Budgeting Step 6—Evaluation Plan

Overview

A Six-Step E-Marketing Plan

Situation analysis Review the firm’s environmental and SWOT analyses.

Review the existing marketing plan and any other information that can be obtained about the company and its brands.

Review the firm’s e-business objectives, strategies, and performance metrics.

Link e-business with e-marketing strategy

Identify revenue streams suggested by e-business models

Tier 1

 Perform Marketing Opportunity Analysis to identify target stakeholders.

Specify brand differentiation variables.

Select positioning strategy.

Tier 2

Design the offer, value, distribution, communication, and market/partner relationship management strategies.

Objectives Identify general goals.

Select target specific goals.

Implementation plan Design e-marketing mix tactics.

Design information gathering tactics.

Design organizational structures for implementing the plan.

Budget Forecast revenues.

Evaluate costs to reach goals.

Evaluation plan Identify appropriate performance metrics.

Exhibit 3 - 1 Marketing Plan Process

Overview of the E-Marketing Planning Process

Creating an E-Marketing Plan

The Napkin Plan The Venture Capital E-Marketing Plan

A Six-Step E-Marketing Plan

Step 1—Situation Analysis

Step 2—Link E-Business with E-Marketing Strategy Step 3— Formulate Objectives

Step 4—Design Implementation Plan to Meet the Objectives

Step 5—Budgeting Step 6—Evaluation Plan

Overview

Step 1—Situation Analysis

Planning for e-marketing does not mean starting from scratch but working with existing business, e-business, and marketing plans is an excellent place to start

Opportunities Threats

 Hispanic markets growing and

untapped in our industry.

 Save postage costs through e-mail

1 Strong customer service department.

2 Excellent Web site and database

system.

1 Low tech corporate culture

2 Seasonal business: peak is summer months.

E-business Goal: Initiate e-commerce in within one year.

Metric: Generate $500,000 in revenues from e-commerce during the first year.

Exhibit 3 - 1 SWOT, Objective, and Metric Example from E-Business Plan

Step 1—Situation Analysis

strategy.

markets currently served, and so forth

sold and suggests geographic gaps that might be receptive to commerce

with the firm’s current advertising, sales promotion, and other marketing communications.

must decide how closely Web site content and promotion will follow current positioning strategies

Overview of the E-Marketing Planning Process

Creating an E-Marketing Plan

The Napkin Plan The Venture Capital E-Marketing Plan

A Six-Step E-Marketing Plan

Step 1—Situation Analysis

Step 2—Link E-Business with E-Marketing Strategy

Step 3— Formulate ObjectivesStep 4—Design Implementation Plan to Meet the Objectives

Step 5—Budgeting Step 6—Evaluation Plan

Overview

Step 2—Link E-Business with E-Marketing Strategy

 Marketers need to:

2 Conduct a strategic planning to help achieve the firm’s business goals + define potential revenue streams,

e-3 Create supporting e-marketing strategy for the e-business goals:

A Tier one strategy: marketers design segmentation, targeting, differentiation, and positioning strategies,

B Tier two strategy deals with the 4P’s and relationship management

by creating strategies around the offer (product), value (pricing), distribution (place), and communication (promotion),

strategies (CRM/PRM)

Distribution

Offer

E-Marketing Strategy

Tier One E-Marketing Strategic

Planning: Segmenting & targeting

describe and evaluate the potential profitability, sustainability, accessibility, and size of various potential segments.

characteristics, geographic location, selected psychographic, and past behavior toward the descriptors help firms identify potentially attractive markets

 Allows the company to select its target market and understand its characteristics, behavior, and desires in the firm’s product category.

Tier One E-Marketing Strategic

Planning: Segmenting & targeting

Tools:

- Traditional segmentation analyses

- Analyzes of customer bases using cookies, database

analyses, and other techniques,

- Supply analysis: forecasts segment profitability + finds competitive advantages,

- Study of competition to find the company own

performance advantages.: strengths and weaknesses, marketing initiatives, …

e Identify future industry changes

Tier One E-Marketing Strategic Planning:

Identifying brand differentiation variables

and positioning strategies

 The understanding of the competition + the target(s)

 Differentiation of the products to provide benefits

perceived as important by the target

 The positioning statement: the desired image for the

brand relative to the competition

Tier Two E-Marketing

Strategic Planning

The two Tiers are elaborated in an interactive process:

It is difficult to know what the brand position should be without understanding the offer that comprises the brand promise

The Offer: Product Strategies

 The organization can:

channel.

 A firm must decide how online product prices will compare with offline equivalents considering the differing costs of sorting and delivering products to individuals through the online channel as well as competitive and market concerns

The Offer: Product Strategies

 There are two online pricing trends are:

 Dynamic pricing—this strategy applies different price

levels for different customers or situations The Internet allows firms to price items automatically and “on the fly”while users view pages,

 Online bidding—this presents a way to optimize

inventory management

 E.g Priceline.com, eBay.com

Distribution Strategies

 Many firms use the Internet to distribute products or

create efficiencies among supply chain members in the

distribution channel

 Direct marketing—Many firms sell directly to

customers, by-passing intermediaries in the traditional channel for some sales

 Agent e-business models—Firms such as eBay and

E*Trade bring buyers and sellers together and earn a fee for the transaction

Marketing Communication

Strategies

communication strategies, both to draw customers to a Web site and to interact with brick-and-mortar customers

partners,

- Build brand images,

- Position products using the Web and e-mail

Relationship Management

Strategies

 E-marketing communication strategies help build relationships with a firm’s partners, supply chain members, or customers using:

- Customer relationship management (CRM) software to retain

customers and increase average order values and lifetime value,

- Partner relationship management (PRM) software to integrate

customer communication and purchase behavior into a comprehensive database,

- Extranets—two or more proprietary networks linked for better

communication and more efficient transactions among firms (PRM).

Overview of the E-Marketing Planning Process

Creating an E-Marketing Plan

The Napkin Plan The Venture Capital E-Marketing Plan

A Six-Step E-Marketing Plan

Step 1—Situation Analysis Step 2—Link E-Business with E-Marketing Strategy

Step 3— Formulate Objectives

Step 4—Design Implementation Plan to Meet the Objectives

Step 5—Budgeting Step 6—Evaluation Plan

Overview

Step 3— Formulate Objectives

 In general, an objective in an e-marketing plan takes the form:

 Task (what is to be accomplished),

 Measurable quantity (how much),

 Time frame (by when)

Typical E-Marketing Objectives

 Most e-marketing plans aim to accomplish multiple objectives such as:

 Increase market share,

 Increase sales revenue,

 Reduce costs,

 Achieve branding goals,

 Improve databases,

 Achieve customer relationship management goals,

 Improve supply chain management

E-Marketing Objective-Strategy Matrix

Objective-strategy matrix presents the firm’s e-marketing

strategies and accompanying goals.

Online Advertising

Database Marketing

Direct E-mail

Online Sales Viral

Marketing

Find affiliates No No No No Yes

Gather customer information

No Yes Yes Yes Yes

Improve customer service

No Yes Yes Yes No

Increase brand name awareness

Yes Yes Yes Yes Yes

Sell goods or services Yes Yes Yes Yes Yes

Exhibit 3 - 1 E-Marketing Objective-Strategy Matrix

Source: Adapted from Embellix eMarketing Suite

Overview of the E-Marketing Planning Process

Creating an E-Marketing Plan

The Napkin Plan The Venture Capital E-Marketing Plan

A Six-Step E-Marketing Plan

Step 1—Situation Analysis Step 2—Link E-Business with E-Marketing Strategy Step 3— Formulate Objectives

Step 4—Design Implementation Plan to Meet the Objectives

Step 5—Budgeting Step 6—Evaluation Plan

Overview

Step 4 — Design Implementation

Plan to Meet the Objectives

 Select:

- The marketing mix (4 Ps),

- Relationship management tactics,

- Other tactics to achieve the plan objectives

 Devise detailed plans for implementation

 Check the right marketing organization is in place for implementation

Step 4 — Design Implementation

Plan to Meet the Objectives

 Information technologies are especially adept at automating these processes, this is why the

information gathering tactics are important:

- Web site forms, feedback e-mail, and online surveys,

- Web site log analysis software helps firms review user behavior at the site and make changes to better meet the needs of users,

research, assisting firms in understanding competitors and other market forces

Overview of the E-Marketing Planning Process

Creating an E-Marketing Plan

The Napkin Plan The Venture Capital E-Marketing Plan

A Six-Step E-Marketing Plan

Step 1—Situation Analysis Step 2—Link E-Business with E-Marketing Strategy Step 3— Formulate Objectives

Step 4—Design Implementation Plan to Meet the Objectives

Step 5—Budgeting

Step 6—Evaluation Plan

Overview