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)