3. 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
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4. 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
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5. 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
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8. Exhibit 8 - 2 Marketing Plan Process
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9. 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)
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10. The Existing Marketing Plan
• Working with existing information is the
best place to start, if you want to follow
current positing strategies.
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11. Situation Analysis
Conduct an Environmental Scan
–Legal/Political Environment
•Taxation, access, copyrights, & encryption
– Technological Environment
•Communication Infrastructures
•Bandwidths, and New browsing devices
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12. 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?
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15. Situation Analysis
Develop a Market Opportunity Analysis
- Includes both demand & supply analysis
• Demand side: reviews potential profitability
• Supply side: reviews competition, and finds
competitive advantages
- SWOT
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16. 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)
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17. Situation Analysis
Develop 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.
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19. 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
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20. 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
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21. Pure Play
Advantages
They are not held to the
The final level is comprised
same standards of
of internet pure plays
profitability as the brick-
and-mortar stores
Pure plays are companies They are held to be
without brick and mortar smaller and have more
presence agile cultures able to
move quickly in response
to market fluctuations
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22. 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
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23. Identify Target Stakeholders
When 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.
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24. 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.
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25. 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
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26. Marketing Mix Component Rank Business Model
Product •Digital value through new products Exhibit 7
Price •Cost reduction using E-marketing
Selected
•Negotiation
•Segmented pricing E-Business
Distribution •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 products
Marketing Communication •Content publishing
•E-mail
•Community building
•Online advertising
•Online sales promotion
Relationship Marketing CRM
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27. Action Plan
An action plan will decide which strategies are best to
promote the business or company. Having decided that
an Internet presence is essential the following
considerations are necessary:
Project Scope
Site Development
Site Promotion
Site Maintenance
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28. Project Scope
•To decide the level of Internet and e-commerce commitment
that is both beneficial, cost effective and advantageous to the
company.
•To evaluate the need for e-mail contact between stakeholders
and staff, and what staffing is necessary to implement such a
program.
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29. Site Development
Build, 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
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30. 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
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31. Exhibit 9 Adjacency (Sapient) Builds and Promotes Web Sites
for Clients
Source: www.adjacency.com
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33. 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
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34. Budgeting
Evaluate 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
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35. 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
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36. 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
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37. Intangible Benefits
The industry is developing exponentially
creating new marketing opportunities, although
they may be hard to measure
Goodwill
Brand Equity
Audience Measurement
Public Relations
Customer Satisfaction
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38. Cost/Benefit Analysis
Analyze the cost
of e-marketing versus the benefits
Benefits Costs
Revenue increases ISP Costs
Cost decreases Hardware and
Intangible benefits Software Costs
Goodwill
Design Costs
Brand/Image Building
Maintenance Costs
Relationship Building
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39. 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
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