MPS - E-Marketing & Controls

8/13/2019 MPS - E-Marketing & Controls

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e-Marketing Strategy

Course Instructor - Anurag [email protected]



Structure

B. WHERE ARE WE NOW?

3. Environmental Analysis: MarketInformation and Intelligence

C. WHERE DO YOU WANT TO BE?

4. Strategic Marketing Decisions & Choices5. Segmentation, Targeting

& Positioning Strategies6. Relationship Strategies

D. HOW WILL WE GET THERE?

7. Product Innovation & Development8. Branding Strategies9. Service Marketing

10. Pricing & Distribution11. Marketing Communications12. E-Marketing

E. DID WE GET THERE?

13. Strategy Implementation, Control& Financial/Quantitative Analyses

A. INTRODUCTION

1. Overview2. Marketing Strategy - Analysis &

Perspectives

F. CONCLUSION

14. Social Marketing & CSR



Introduction

In the general excitement over the Internet, manyobservers have argued that the old rules aboutmarketing strategy have changedOrganisations that treat the Internet as anevolutionary force tend to outperformorganisations that see it as revolutionaryE- markets are ‘smart’Most customers are concerned by conveniencerather than priceE-marketing is thus more about differentiationthan cost



Navigation

Navigation is a term linked to E-marketing: the process ofsteering between the mass and variety of information incyberspaceHowever, navigation also occurs in physical commerce. Forexample, no one reviews all the possible options in buying a

shirt or pair of shoesOver the Internet it is possible to search extensively atnegligible cost. Navigation and selection occur independentlyof physical warehousing and distribution and bricks andmortar companies no longer have any special advantagesNavigation is the key to profit potential



ReachHow many customers

a business can access and howmany products it can offer

RangeRelates to the breadth and depth

of the products and servicesoffered

AffiliationIs about whose interestthe business represents

RichnessIs the depth and detail of

information that the businessgives the customer and

collects about the customer

Navigation Dimensions

(Wells & Gobeli, 2003)

Critical to decide on what dimension do you want to leveragee-marketing



Loyalty

Acquiring customers on the Web is extremelyexpensive, so unless companies can lock customersin, they will be faced with the prospect of cateringsolely to price-sensitive



Customization

Identify

Differentiate

Interact

Customize



Identify

Being able to locate and contact anumber of customers directly, or at leasta large chunk of the most valuable ones

and understand their behaviourHabits and preferences as well as theaddresses, phone numbers…



Differentiate

Recognises different levels of value andneeds

Invaluable for deciding on the best E-marketing strategy in any given situation

People will do business with sites thatmake their lives easier and are preparedto pay a premium



Interact

Hiring an outside service for scanning ordata entryDrip-irrigation (asking only one or twoquestions each transaction)Periodic review of the integrity of the list



Customisation

Choiceboards are on-line systems thatinteract with customers so that they candesign their own goods and services from amenu of featuresInstead of having to haggle over the price offixed product lines, the Internet changescommerce and enables consumers todescribe exactly what they wantFurthermore, suppliers are able to deliverbespoke goods and services withoutcompromise or delay



Communities

Communities enable consumers to communicatewith each otherThe aim is to build differentiation throughrelationships

Communities like Facebook, Orkut and Twitter havestarted acting as virtual meeting points of e-savvyconsumersExchanges provide brands with free content andconsumers appreciate the ability of meeting like-minded peopleContent and exchanges act like magnets and drawpeople back frequently and regularly



Conclusion

E-marketing strategy is rooted in the classicelements of the Five Forces and sustainablecompetitive advantageAny e-marketing strategies should be based on

businesses run like bricks and mortar companiesusing classic metrics like gross margin and size oforderHowever, to achieve e-marketing success it mayoften be necessary to mentally break down thecurrent business model into its components, andunderstand which of the current components canbe managed better using e-marketing strategies



Strategy Implementation, Control,and Finance/Quantitative Analysis

Course Instructor - Anurag [email protected]



Introduction

Most marketing practitioners spend large amounts of timeplanning and formulating marketing strategyThey endeavour to direct the actions of marketing personnel,the sales force and channel intermediaries, and allocatesubstantial effort to the organization of marketing activitiesand human resourcesYet less time is given to the fundamental marketing task ofcontrolling, and its related activity, implementationIn future a firm’s marketing success will hinge not so muchon having a good strategy, but on how well this strategy isimplemented and controlled



Basic Steps in Control

1. Set standards of performance (these aretypically in the form of goals orobjectives)

2. Evaluate the reality of what occursagainst these steps

3. Take corrective or reinforcing action

where required



Competitive Advantage & Control variablesOutcome What does it indicate How to measure

CustomerSatisfaction

Overall customer satisfaction Customer satisfaction surveys

Difference between expectations and perceptionsService Quality studies -

SERVQUAL

Customer LoyaltyWillingness to choose your brand over others Loyalty Surveys

Customer ChurnRetention studiesDefection studies

Market Share Proportion of total market serviced by a companyCompany and competitor's sales

or no. of units sold

Financial

Productivity

Sales Growth % change in sales

COGS to sales (Your productivity)% costs that are used to produce

no. of units sold

Gross Profit margin (Your competitiveness)Sales-COGS (Indicates

manufacturing efficiency)

SG&A to sales (Control admin expenses)

Selling, General, Admin

Expenses/Sales (Indicates adminefficiency)

Net Profit margin (How much money do you generate)How much profit per rupee of

salesROE (How investment friendly is your business) Net Profit/Equity

ROA (Are you making optimal use of assets) Net profit/Assets



1 Set Standards

e.g. MarketingObjective is to

attain 25%market share

2 Evaluate

StandardsAgainst Reality

Possible Outcome 1:15% market share

Possible Outcome 2:35% market share

3 Take Action

CorrectiveAction

ReinforcingAction

Steps in the Control Process



Nature of Control

Annual Plan control looks at the objectives set in the annualmarketing plan, evaluates these against the actual resultsachieved, and takes corrective or reinforcing action whennecessaryFinancial or Expense control considers the financialparameters and objectives set by a firm in its annualmarketing plan, and the corrective or reinforcing actionsneeded to attain theseThe purpose of strategic control is to ensure that theorganization is maximizing the opportunities that exist in itsbusiness environment. Strategic control often takes the formof a marketing audit



Customer Life time value (CLTV)

Based on the understanding that it is much moreexpensive to acquire a new customer rather thanretaining an existing customerCLTV is the overall revenues and profits which acustomer would give the company over his lifetimeassociation with the company/brandEach customer can have a personal profit and lossaccount from the perspective of the companyCritical to keep the high profit margin customersloyal to the brand



Increasing CLTV

Increasing retention rate, or increasingcustomer life (i.e. the number of years acustomer can remain a customer)

Increasing Sales to a Customer, either byincreasing the firm’s share of thecustomer’s purchases, or by increasing

the customer’s referral rate Cutting the Costs of serving a customer



Corporate Culture

The Clan culture, which emphasisesteamwork and cooperationThe Adhocracy culture, which

emphasizes entrepreneurship andcreativityThe Hierarchy culture, which emphasizesorder, regulations and rulesThe Market culture, which emphasizescompetitiveness and goal achievement

(Deshpande, Farley and Webster, 1993)



The BCG Matrix



The G.E. Matrix



The Value Chain Analysis

MPS - E-Marketing & Controls

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