creating emarketing planning

8/4/2019 Creating Emarketing Planning

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E-Marketing The E-Marketing Plan



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



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 sustainablecompetitive advantage with the Internet

when so little is understood about how tosucceed?





The Napkin PlanThe Venture Capital E-Marketing Plan




Step 3 — Formulate Objectives

Step 4 — Design Implementation Plan to Meet the

Objectives



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) withtechnology-driven marketing strategies and lays out details for

plan implementation through marketing management.

The e-marketing plan serves as a roadmap to guide thedirection of the firm, allocate resources, and make toughdecisions at critical junctures.

There are two common types of e-marketing plans:- The napkin plan,

- The venture capital plan.





The Napkin Plan





Step 3 —

Formulate ObjectivesStep 4 — Design Implementation Plan to Meet the

Objectives



Overview



The Napkin Plan Dot-com entrepreneurs were known to simply jot their ideas on

a napkin over lunch and then run off to find financing.

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

These plans sometimes work and are sometimes even

necessary but they are not recommended when substantialresources are involved. Sound planning and thoughtfulimplementation are needed for long-term success in business.





The Napkin Plan






Objectives


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 entiretraditional marketing planning process.

BUT as the company grows and needs capital, it has to puttogether a comprehensive e-marketing plan.

Where does an entrepreneur go for capital?

- Sometimes bank loans,

- 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 toprove that:

The e-business idea is solid,

The entrepreneur has some idea of how to run the business.



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 aboutbuying this product or service?

3. To what degree is the product or service acompelling 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

answer:

5. How will the venture reach all the identified

customer segments?6. How much does it cost (in time and resources)

to acquire a customer?

7. How much does it cost to produce and deliverthe 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 aninitial public offering (IPO),

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

All VCs’ investments are not successful. But if evenone out of 20 is an Amazon.com, the risk was wellworth the reward.





The Napkin Plan

The Venture Capital E-Marketing PlanA Six-Step E-Marketing Plan



Step 3 —


Objectives



Overview



A Six-Step E-Marketing Plan Step Tasks

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

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

Review the firm’s e-business objectives, strategies, andperformance metrics. Link e-business with

e-marketing strategyIdentify revenue streams suggested by e-business modelsTier 1

Perform Marketing Opportunity Analysis to identifytarget stakeholders.

Specify brand differentiation variables.Select positioning strategy.Tier 2Design the offer, value, distribution, communication, andmarket/partner relationship management strategies. Objectives Identify general goals.Select target specific goals. Implementation plan Design e-marketing mix tactics.

product/service offering

pricing/valuation

distribution/supply chain

integrated communication mixDesign relationship management 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





The Napkin Plan




Step 3 —


Objectives



Overview



Step 1 —Situation Analysis

Planning for e-marketing does not mean starting from scratch but workingwith existing business, e-business, and marketing plans is an excellentplace to start.

Opportunities Threats Hispanic markets growing and

untapped in our industry.

Save postage costs through e-mailmarketing.

Pending security law means costly softwareupgrades.Competitor X is aggressively using e-commerce.

Strengths Weaknesses

1. Strong customer service department.

2. Excellent Web site and databasesystem.

1. Low tech corporate culture

2. Seasonal business: peak is summermonths.

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

The organizational e-business plan: SWOT analysis => e-businessstrategy.

The marketing plan: gathers information about the firm’s products, the

markets currently served, and so forth. The distribution plan: identifies areas where the products are currently

sold and suggests geographic gaps that might be receptive to e-commerce.

Promotion plan information: gives clues about how the Internet fits

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

The firm and brand positioning in the marketplace: Internet plannersmust decide how closely Web site content and promotion will followcurrent positioning strategies.

The marketer moves to strategy formulation.





The Napkin Plan




Step 2 — Link E-Business with E-Marketing

StrategyStep 3 — Formulate Objectives

Step 4 — Design Implementation Plan to Meet the

Objectives



Overview



Step 2 —Link E-Business withE-Marketing Strategy

Marketers need to:

1 Review the marketing and e-business plans,

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

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

4 Further, marketers design customer and partner relationshipstrategies (CRM/PRM).



Segmentation

Targeting

Value

Differentiation

CRM/PRM

Positioning

Communication

Distribution

Offer

E-Marketing

StrategyTier 2

tasks

Tier 1

tasks

Exhibit 3 - 1 Formulating E-Marketing Strategy in Two Tiers



Tier One E-Marketing StrategicPlanning: Segmenting & targeting

- Market opportunity analysis (MOA):

The demand analysis = market segmentation analyses to

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

The segment analysis in the B2C market with demographiccharacteristics, geographic location, selected psychographic,

and past behavior toward the descriptors help firms identifypotentially attractive markets.

Allows the company to select its target market and understandits characteristics, behavior, and desires in the firm’s product

category.



Tier One E-Marketing StrategicPlanning: Segmenting & targeting

Tools:

- Traditional segmentation analyses.

- Analyzes of customer bases using cookies, databaseanalyses, and other techniques,

- Supply analysis: forecasts segment profitability + findscompetitive advantages,

- Study of competition to find the company ownperformance advantages.: strengths and weaknesses, e-marketing initiatives, …

- 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 benefitsperceived as important by the target.

The positioning statement: the desired image for the

brand relative to the competition.



Tier Two E-MarketingStrategic Planning

The two Tiers are elaborated in an interactive process:

It is difficult to know what the brand position should bewithout understanding the offer that comprises the brandpromise.



The Offer: Product Strategies

The organization can:

- Sell merchandise, services, or advertising on the Web site,

- Adopt an e-business model such as online auctions,

- Create new brands for the online market,

- Simply sell selected current or enhanced products in thatchannel.

A firm must decide how online product prices will comparewith 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 pricelevels 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

http://www.priceline.com/

http://www.ebay.com/


http://www.priceline.com/



Distribution Strategies

Many firms use the Internet to distribute products orcreate efficiencies among supply chain members in the

distribution channel.

Direct marketing —Many firms sell directly tocustomers, by-passing intermediaries in the traditionalchannel for some sales.

Agent e-business models —Firms such as eBay andE*Trade bring buyers and sellers together and earn afee for the transaction.

http://www.etrade.com/








Marketing CommunicationStrategies

The Internet spawned a multitude of new marketingcommunication strategies, both to draw customers to a Website and to interact with brick-and-mortar customers.

Firms use Web pages and e-mail to:

- Communicate with their target markets and businesspartners,

- Build brand images,- Create awareness of new products,

- Position products using the Web and e-mail.



Relationship ManagementStrategies

E-marketing communication strategies help build relationshipswith a firm’s partners, supply chain members, or customersusing:

- Customer relationship management (CRM) software to retaincustomers and increase average order values and lifetime value,

- Partner relationship management (PRM) software to integrate

customer communication and purchase behavior into acomprehensive database,

- Extranets —two or more proprietary networks linked for bettercommunication and more efficient transactions among firms (PRM).





The Napkin Plan




Step 3 —


Objectives



Overview



Step 3 — Formulate Objectives

In general, an objective in an e-marketing plan takes theform:

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 multipleobjectives 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 Goals Online Strategies

OnlineAdvertising

DatabaseMarketing

DirectE-mail

Online Sales ViralMarketing

Findaffiliates

No No No No Yes

Gathercustomerinformation

No Yes Yes Yes Yes

Improve

customerservice No Yes Yes Yes No

Increasebrand nameawareness

Yes Yes Yes Yes Yes

Sell goods orservices

Yes Yes Yes Yes Yes

Exhibit 3 - 1 E-Marketing Objective-Strategy Matrix

Source: Adapted from Embellix eMarketing Suite





The Napkin Plan




Step 3 —


Objectives



Overview



Step 4 — Design ImplementationPlan 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 ImplementationPlan to Meet the Objectives

Information technologies are especially adept atautomating these processes, this is why theinformation gathering tactics are important:

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

- Web site log analysis software helps firms reviewuser behavior at the site and make changes to bettermeet the needs of users,

- Business intelligence uses the Internet for secondaryresearch, assisting firms in understandingcompetitors and other market forces.





The Napkin Plan






Objectives



Overview




A key part of any strategic plan is to identify theexpected returns from an investment.

Returns are matched against costs to develop acost/benefit analysis, ROI calculation, or internal rateof return (IRR)

Determine whether the effort is worthwhile.

During plan implementation, marketers will closelymonitor actual revenues and costs

To monitor of results are on track for accomplishing theobjectives.



Revenue Forecast

The firm uses an established sales forecasting method forestimating the site revenues in the short, intermediate,and long term.

Inputs: The firm’s historical data, industry reports, andcompetitive actions.

An important part of forecasting is to estimate the level of Web site traffic over time.

This number affects the amount of revenue a firm can

expect to generate from its site. Revenue streams:

- Web site direct sales, - Advertising sales,

- Subscription fees, - Affiliate referrals,

- Sales at partner sites, - Commissions, and other

fees.



Budgeting

Intangible Benefits:

Putting a financial figure on such benefits is challenging butessential for e-marketers.

What is the value of increased brand awareness from a Web

site?

Cost Savings:

Money saved through Internet efficiencies is considered soft

revenue for a firm.



E-Marketing Costs

Costs for employees, hardware, software, programming, and more.

Some traditional marketing costs may creep into the e-marketingbudget

The cost of a Web site can range from $5000 to $50 million.

Few of the costs site developers incur: Technology costs: software, hardware, Internet access or

hosting services, educational materials and training, and other siteoperation and maintenance costs.

Site design. Web sites need graphic designers to create appealingpage layouts, graphics, and photos.



E-Marketing Costs

Other costs site developers incur:

Salaries. All personnel that work on Web site development andmaintenance are budget items.

Other site development expenses. If not included in thetechnology or salary categories, any other expenses will be here(registration of multiple domain names and hiring consultants).

Marketing communication. All advertising, public relations, andpromotions activities, both online and offline, to draw site traffic.

Search engine registration, online directory costs, e-mail list rental,prizes for contests, and more.

Miscellaneous. Other typical project costs might fall here —expenses such as travel, telephone, stationery printing to add thenew URL, and more.





The Napkin Plan





Step 3 —


Objectives



Overview




Once the e-marketing plan is implemented, itssuccess depends on continuous evaluation. Thetracking systems should be in place before the

electronic doors open.

What should be measured? The plan objectives needto be evaluated with:

- 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)



Review Questions1. What are the six steps in an e-marketing plan?

2. Why do entrepreneurs seeking funding need a venturecapital e-marketing plan rather than a napkin plan?

3. What is the purpose of the marketing opportunity analysis

and the segment analysis?

4. What four elements in tier one and five elements in tiertwo are devised for e-marketing strategy?

5. What is the purpose of an e-marketing objective-strategy

matrix?6. How do managers use budgeting within the e-marketing

planning process?

7. Why do e-marketing plans need an evaluationcomponent?



Discussion Questions

1. If you had money to invest, what would you look forin a venture capital e-marketing plan?

2. What kinds of questions should a firm ask in

developing an e-marketing plan to serve customers incurrent markets through an online channel?

3. Why is it important for e-marketers to specify notonly the task but also the measurable quantity andtime frame for accomplishing an objective?

4. Why would the management of American Airlinesexpect its e-marketers to estimate the financialimpact of intangible benefits such as building brandequity through e-mail messages to frequent flyers?

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