Published on April 8, 2013
The E-Marketing Plan Lecturer: Bahman Moghimi Doctor of Business Administration M.Sc. Of “e-Commerce” University of Georgia 2013
Creating an E-Marketing Plan Why would a company pay so much to design and build its Internet presence ? – To protect the corporate and brand identities – Complexity of designing e-marketing strategies B.Moghimi@yahoo.co.uk 3
Creating an E-Marketing Plan An E-Marketing Plan is a company’s blueprint for strategic direction Ad hoc – Companies develop strategies without the development of an E-Marketing Plan • Example: www.yahoo.com 75% of e-business will fail due to flaws in planning B.Moghimi@yahoo.co.uk 4
A Seven Step Marketing Plan 1. Conduct a situation analysis. 2. Identify target stakeholders 3. Set objectives 4. Design marketing mix strategies to meet those objectives 5. Design an action plan 6. Develop a budget 7. Develop an evaluation plan B.Moghimi@yahoo.co.uk 5
Exhibit 8 - 2 Marketing Plan Process 8 B.Moghimi@yahoo.co.uk
Exhibit 3. Critical Success Factors and Dangers for E-Business Key Success Factors Key Dangers § Make it easy for customers to do § Don’t completely redesign a business with you. business to become an e-business. § Focus on the end customer for § Don’t suspend good project your products and services. management rules in the name of e- § Redesign your customer-facing business. business processes from the end § Don’t assume technology can do customer’s point of view. all the heavy lifting in e-business § Wire your company for profit: implementation. Design a comprehensive, evolving § Don’t focus solely on current electronic business architecture. customers for e-business. § Foster customer loyalty, the key § Stay alert for new competition. to profitability in electronic commerce. Source: Success from Seybold (1998); danger from GartnerGroup (1999) 9 B.Moghimi@yahoo.co.uk
The Existing Marketing Plan• Working with existing information is thebest place to start, if you want to followcurrent positing strategies. 10 B.Moghimi@yahoo.co.uk
Situation Analysis Conduct an Environmental Scan–Legal/Political Environment •Taxation, access, copyrights, & encryption– Technological Environment •Communication Infrastructures •Bandwidths, and New browsing devices 11 B.Moghimi@yahoo.co.uk
Situation Analysis Conduct an Environmental Scan–USER Trends •Focus on how the net audience has changed over the last six months, last year, etc… •Are there any trends? •Is there any important target segments coming online?–World Economies •Understand overseas economies, also do they have the proper infrastructures to support what we are doing? 12 B.Moghimi@yahoo.co.uk
Situation AnalysisDevelop a Market Opportunity Analysis - Includes both demand & supply analysis • Demand side: reviews potential profitability • Supply side: reviews competition, and finds competitive advantages - SWOT 15 B.Moghimi@yahoo.co.uk
Exhibit 4. Key Internal Capabilities for E-Business Internal Capability Examples Customer interactions E-commerce, customer service, distribution channels Production and fulfillment SCM, production scheduling, inventory management People Culture, skills, knowledge management, leadership and commitment to e-business Technology ERP systems, legacy applications, networks, Web site, security, IT skills Core infrastructure Financial systems, R&D, HR Source: Adapted from Kalakota (1999) 16 B.Moghimi@yahoo.co.uk
Situation AnalysisDevelop a Market Opportunity Analysis Market Opportunity Analysis includes both demand and supply analyses. The demand portion reviews various market segments in terms of potential profit. The supply analysis review competition in selected segments that are under consideration The purpose of the supply analysis is to assist in forecasting segment profitability and finding competitive advantages in the online market. B.Moghimi@yahoo.co.uk 17
Strategic Opportunities A Key element in setting strategic goals is to take stock of where the company currently is and the level of commitment that it wishes to make to a business. The lowest level impacts individual business activities such as order processing. The next level impacts business processes such as customer relationship management The next level, enterprise is where the firm automates many business processes in a unified system EB = EC + BI + CRM + SCM + ERP ERP – the key here is to make sure that the processes work well together in a unified system 19 B.Moghimi@yahoo.co.uk
Exhibit 5. Level of Commitment to E-Business Pure Pure dot-com (E*Trade)Level of business impact Business transformation (competitive advantage, Play industry redefinition) Enterprise Click and Mortar (eSchwab) Effectiveness Customer (Incremental sales, Business Process relationship customer retention) management Efficiency Brochureware, (Cost Activity Order processing reduction) Source: adapted from www.mohanbirsawhney.com 20 B.Moghimi@yahoo.co.uk
Pure Play Advantages They are not held to the The final level is comprised same standards ofof internet pure plays profitability as the brick- and-mortar stores Pure plays are companies They are held to bewithout brick and mortar smaller and have morepresence agile cultures able to move quickly in response to market fluctuations 21 B.Moghimi@yahoo.co.uk
Exhibit 6. Menu of Opportunities at Various Levels of Commitment Activity Level Business Process Level Enterprise Level Online market research Knowledge management E-tailer Online purchasing Customer relationship Bit vendor Brochureware management (CRM) Online exchange Content publisher Supply chain management Online brokerage E-mail (SCM) Metamediary Online advertising E-Commerce: tangible Infomediary Online sales promotions products Virtual mall Order processing Direct selling Shopping agent Cost reduction using Community building online Reverse auction electronic means Affiliate program Online buyer’s coop Negotiated pricing online Database marketing Mass-customization tools Segmented pricing online Content sponsorship online 22 B.Moghimi@yahoo.co.uk
Identify Target StakeholdersWhen multiple targets are identified, they should be ranked in order of importance so resources can be allocated accordingly Each market should be well profiled by its characteristics, behavior and desires Firms must understand the value proposition for each market. 23 B.Moghimi@yahoo.co.uk
Set Objectives Use carefully worded objectives that flow from plan analyses that have a task, contain a specific measurement device, and has a time frame for accomplishment. 24 B.Moghimi@yahoo.co.uk
Design Marketing Mix Strategies to Meet the Objectives Strategic justification – shows how the strategy fits with the firms overall mission and objectives Operational justification – identifies and quantifies the specific process improvements that will result from the strategy Technical justification – shows how technology will fit and provide synergy with current IT capabilities Financial justification – examines cost/benefit analysis 25 B.Moghimi@yahoo.co.uk
Marketing Mix Component Rank Business ModelProduct •Digital value through new products Exhibit 7Price •Cost reduction using E-marketing Selected •Negotiation •Segmented pricing E-BusinessDistribution •Content sponsorship Models Are •Direct selling •Infomediary •Intermediaries Also • Broker: Online exchange Online auction • Agent: Manufacturer’s agent Affiliate Marketing program •Metamediary •Virtual mall Strategies •Shopping agent •Reverse auction •Buyer cooperative • E-tailer bit vendor •Tangible productsMarketing Communication •Content publishing •E-mail •Community building •Online advertising •Online sales promotionRelationship Marketing CRM B.Moghimi@yahoo.co.uk 26
Action PlanAn action plan will decide which strategies are best topromote the business or company. Having decided thatan Internet presence is essential the followingconsiderations are necessary: Project Scope Site Development Site Promotion Site Maintenance 27 B.Moghimi@yahoo.co.uk
Project Scope•To decide the level of Internet and e-commerce commitmentthat is both beneficial, cost effective and advantageous to thecompany.•To evaluate the need for e-mail contact between stakeholdersand staff, and what staffing is necessary to implement such aprogram. 28 B.Moghimi@yahoo.co.uk
Site DevelopmentBuild, Buy or Rent, the Following Considerations Apply: Outsourcing – speeds completion of the project Personnel Cost Savings Faster Loading Site User Friendly Product More Professional Graphics & Information Outsourcers are aware of Copyright Rules 29 B.Moghimi@yahoo.co.uk
Site Promotion Register Site with Search Engines Use Metatags, Keywords and HTML tags List Site with Appropriate Directories Utilize Electronic Press Releases Link to Complimentary Web Sites Incorporate Web Site Address in all Media Consider Banner Advertising Consider Hiring an Outside Firm to Promote Web Site Links to Site Promotion & Search Engines: www.yahoo.com/ www.hotbot.com www.excite.com http://www.adjacency.com/ 30 B.Moghimi@yahoo.co.uk
Exhibit 9 Adjacency (Sapient) Builds and Promotes Web Sitesfor ClientsSource: www.adjacency.com 31 B.Moghimi@yahoo.co.uk
Site Maintenance Always Update the Site Decide Whether to Outsource or Update in House (You can use CMS) Evaluate the need for Human Resource for Web Site Maintenance 33 B.Moghimi@yahoo.co.uk
BudgetingEvaluate the cost/benefits analysis &Identify Potential Revenue Streams: E-Commerce – Do we sell on-line? Content Sponsorship – Banners, Buttons, Sponsorships Intermediary Fees – Broker and Agent Fees 34 B.Moghimi@yahoo.co.uk
Revenue Streams Initial funds to support a Web site come from: – Investors – Loans – Firm’s operating budget Revenue streams that produce Internet profits come mainly from: – Direct sales – Advertising sales – Other fees 35 B.Moghimi@yahoo.co.uk
Cost Savings By Selling and Marketing On-line Eliminating elements of the traditional distribution chain Increases possibilities of greater revenue Saves on traditional marketing costs (printing, postage) Increases target market to world-wide audience 36 B.Moghimi@yahoo.co.uk
Intangible BenefitsThe industry is developing exponentiallycreating new marketing opportunities, althoughthey may be hard to measure Goodwill Brand Equity Audience Measurement Public Relations Customer Satisfaction 37 B.Moghimi@yahoo.co.uk
Cost/Benefit Analysis Analyze the cost of e-marketing versus the benefitsBenefits Costs Revenue increases ISP Costs Cost decreases Hardware and Intangible benefits Software Costs Goodwill Design Costs Brand/Image Building Maintenance Costs Relationship Building 38 B.Moghimi@yahoo.co.uk
Evaluation Plan Monitor and Track Site Usage Cognitive Measure unique visits and impressions Attitudinal Survey customers for brand satisfaction objective: CRM, firm would use AOV (average order value) and LTV (lifetime customer value) Trans-active Measure purchases, site traffic, previous paths and click-through rate 39 B.Moghimi@yahoo.co.uk
My approach | E-marketing Strategy 40
My approach | E-marketing Strategy 41
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