Chapter 3: The E-Marketing Plan
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Transcript of Chapter 3: The E-Marketing Plan
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 ObjectivesStep 4—Design Implementation Plan to Meet the Objectives Step 5—Budgeting Step 6—Evaluation Plan
Overview
E-Marketing Plan Definition
Guiding, dynamic document Links the firm’s e-business strategy with
technology-driven marketing strategies Lays out details for plan implementation
through marketing management. Serves as a roadmap
Guide the direction of the firm, Allocate resources Make tough decisions at critical junctures.
Creating an E-Marketing Plan This marketing process entails three
steps: 1. Marketing plan creation, 2. Plan implementation, 3. Evaluation/corrective action.
There are two common types of e-marketing plans:
1. The napkin plan, 2. The venture capital plan.
The Napkin Plan Jot ideas on a napkin over lunch and then
run off to find financing. The big company version of this is the just-
do-it. These plans sometimes work but are not
recommended when substantial resources are involved.
The Venture Capital E-Marketing Plan
As the company grows and needs capital, it has to put together a comprehensive e-marketing plan.
Where does an entrepreneur go for capital? - Bank loans, - Equity financing,
- Private funds, - Angel investors, - Venture capitalists.
The Venture Capital E-Marketing Plan
Investors look for plans that show: Solid idea Good people
Exit plan VCs and the Dot Com crash
A Six-Step E-Marketing Plan
1. Situation analysis2. Link e-business with e-marketing
strategy3. Objectives4. Implementation plan5. Budget6. Evaluation plan
Step 1—Situation Analysis Start with existing business, e-business,
and marketing plans Develop SWOT analysis for e-marketing
Step 2—Link E-Business with E-Marketing StrategyMarketers need to:
• Review the marketing and e-business plans,
• Conduct a strategic planning to help achieve the firm’s e-business goals + define potential revenue streams,
• Create supporting e-marketing strategy for the e-business goals:• Tier one strategy: Target Market• Tier two strategy: Marketing Mix
• Design customer and partner relationship strategies (CRM/PRM)
Tier One E-Marketing Strategic Planning
Segmenting and targeting Market Opportunity Analysis (MOA)
Demand analysis Segment analysis
Supply analysis
Differentiation and positioning Positioning statement
Tier Two E-Marketing Strategic Planning
The two Tiers are elaborated in an iterative process
Product Strategies
The organization can:- Adopt a e-business model such as
online auctions, - Sell merchandise, services, or
advertising on the Web site, - New brands- Selected current or enhanced products
Pricing Strategies How will online product prices compare with
offline equivalents? Two online pricing trends:
Dynamic pricing Online bidding
Distribution Strategies
To distribute products or create efficiencies among supply chain members Direct marketing Agent e-business models
Marketing Communication (Promotion) Strategies Firms use Web pages and e-mail to:
- Communicate with their target markets and business partners,
- Build brand images,- Create awareness of new products, - 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
- Customer relationship management (CRM) software
- Partner relationship management (PRM) software
- Extranets
Step 3— Formulate Objectives
Task Measurable quantity Time frame
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.
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 5 — Budgeting A key part of any strategic plan is to identify
the expected returns from an investment. Returns are matched against costs to
develop a cost/benefit analysis, ROI calculation, or internal rate of return (IRR)
Determine whether the effort is worthwhile.
During plan implementation, marketers will closely monitor actual revenues and costs
To monitor of results are on track for accomplishing the objectives.
Revenue Forecast Use established sales forecasting methods Inputs: The firm’s historical data, industry
reports, and competitive actions. Estimate the level of Web site traffic over time. Revenue streams:
- Web site direct sales- Advertising sales- Subscription fees- Affiliate referrals, - Sales at partner sites- Commissions, & other fees.
Budgeting
Intangible Benefits• What is the value of increased brand
awareness from a Web site? • What is the value of increased customer
satisfaction from allowing them access their accounts on line?
Cost Savings:• Money saved through Internet
efficiencies: soft revenue for a firm.
E-Marketing Costs Technology costs Site design Salaries Other site development expenses Marketing communication Miscellaneous
Step 6 — Evaluation Plan
Success depends on continuous evaluation Tracking systems
What should be measured? Success in meeting plan objectives
Balanced scorecard for e-business ROI
Key Terms
•Angel investors
•Demand analyses
•Direct marketing
•Dynamic pricing
•E-marketing plan
•Market Opportunity Analysis (MOA)
•Online bidding
•Partner Relationship Management (PRM)
•Segment analysis
•Situation analysis
•Supply analyses
•Venture Capital (VC)