Chapter 1

The E-Marketing PlanE-Marketing/6EChapter 3E-MarketingObjectives3-2After this lecture, you will be able to:Discuss the nature and importance of an e-marketing plan; outline its 7 steps.Show the form of an e-marketing objective and explain the use of an objective-strategy matrix.Describe the tasks that marketers complete in tiers 1 and 2 as they create e-marketing strategies.List key revenues and costs identified during the budgeting step of the planning process.3-23-2E-MarketingThe Twitter Story3-3Started as a concept in a brainstorming meeting in 2006 to become 11th in U.S. Web traffic and the 3rd most popular social network.Twitter took off after attendees sent text messages on 60-inch TV screens at the South by Southwest festival in 2007.Has reportedly raised $57 in venture capital.What is Twitters business model and where is the revenue stream?E-MarketingThe E-Marketing Planning Process3-4The e-marketing plan is a blueprint for e-marketing strategy formulation and implementation.Links the firms e-business strategy with technology-driven marketing strategies.The plan serves as a roadmap to guide the firm, allocate resources, and make decisions.E-MarketingE-Marketing Plan

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E-MarketingE-MarketingTwo common types of plans3-6Napkin PlanEntrepreneurs may jot down ideas on a napkin or pad of paper.Large companies might create a just-do-it, activity-based, bottom-up plan.These ad hoc plans may work but are not recommended.The Venture Capital E-Marketing Plan is a more comprehensive plan for those seeking start-up capital and long-term success. E-MarketingSources of funding3-7Where does an entrepreneur go for start-up capital?Bank loansPrivate fundsAngel investorsVenture capitalists (VCs)From 2008-2009, U.S. venture capital investment in Internet companies increased by 38%.E-MarketingSeven-Step E-Marketing Plan3-8Situation analysisE-Marketing strategic planningObjectivesE-Marketing strategyImplementation planBudgetEvaluation planE-MarketingSTEP 1: SITUATION ANALYSIS3-9Review the firms environmental factors and SWOT analysis.

Three key environmental factors are legal, technological and market-related factors.

SWOT examines the companys internal strengths and weaknesses and looks at external opportunities and threats.E-MarketingSWOT ANALYSIS LEADING TO E-MARKETING OBJECTIVE3-10OpportunitiesThreatsCustomer (online) markets growing and untapped in our industry.Save postage costs through e-mail marketing.Pending security law means costly software upgrades.Competitor X is aggressively using e-commerce.StrengthsWeaknessesStrong customer service department.Excellent Web site and database system.Low-tech corporate culture.Seasonal business: Peak is summer months.E-Marketing Objective: $500,000 in revenues from e-commerce in one year.E-MarketingE-MarketingSTEP 2: E-MARKETING STRATEGIC PLANNING3-11Market and product strategies, called Tier 1 tasks or strategies, are outcomes of strategic planning.SegmentationTargetingDifferentiationPositioningMarketers conduct analyses to determine strategies.Market opportunity analysis (MOA)Demand analysisSegment analysisSupply analysis

E-MarketingSTEP 3: OBJECTIVES3-12An objective in an e-marketing plan may include the following aspects:Task (what is to be accomplished)Measurable quantity (how much)Time frame (by when)

Most e-marketing plans have multiple objectives:Increase market shareIncrease the number of comments on a blog

E-MarketingSTEP 3: OBJECTIVES, CONT.3-13 Increase sales revenue Reduce costs Achieve branding goals Increase database size Achieve customer relationship management goals Improve supply chain management

E-MarketingStep 4: E-Marketing Strategies3-14 Tier 2 strategies include strategies related to the 4 Ps and relationship management to achieve plan objectives.

Product strategies: merchandise, content, services or advertising on its website. Pricing strategies Dynamic pricing Online biddingE-MarketingStep 4: E-Marketing Strategies, cont.3-15Distribution strategiesDirect marketingAgent e-business modelsMarketing communication strategiesRelationship management strategiesSome firms use CRM (customer relationship management) or PRM (partner relationship management) software to integrate customer communication and purchase behavior into a database.E-MarketingSteps 2, 3, and 4 of the E-Marketing Plan3-16

E-MarketingE-MarketingStep 5: Implementation Plan3-17Tactics are used to achieve plan objectives Marketing mix (4 Ps) tactics Relationship management tactics Marketing organization tactics Staff, department structure Information-gathering tactics Website forms, cookies, feedback e-mail, website log analysis Business intelligence and secondary researchE-MarketingStep 6: Budget3-18 The plan must identify the expected returns from marketing investments, in order to develop: Cost/benefit analysis ROI calculation Internal rate of return (IRR) calculation Return on marketing investment (ROMI)E-MarketingRevenues and Costs 3-19 Revenue forecast Intangible benefits, such as brand equity Cost savings E-Marketing costs Technology Site design Salaries Other site development expenses Marketing communication MiscellaneousE-MarketingStep 7: Evaluation Plan3-20Marketing plan success depends on continuous evaluation. E-marketers must have tracking systems in place to measure results. Various metrics relate to specific plan goals.Todays firms are ROI driven. E-marketers must show how intangible goals will lead to higher revenue. Accurate and timely metrics can help justify expenditures.E-MarketingSummaryE-Marketing plan is a guiding, dynamic document The purpose is to help the firm achieve it desired results as measured by performance metrics according to the specifications of e-business model and e-business planAn e-marketing plan always helps show that idea is solidCreating an E-Marketing plan requires seven steps3-21E-MarketingAnd, there is one more thingConsider a local business with which you are familiar and sketch a bare-bones E-Marketing plan for it3-22E-MarketingChart2111111111

Step 3 E-Marketing ObjectivesStep 4Tier 2 TasksStep 2Tier 1 TasksValue(Price)Communication(Promotion)Distribution(Place)Offer(Product)

Sheet1Segmentation1Targeting1Differentiation1Positioning1Offer1Value1Distribution1Communication1CRM/PRM1

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Sheet2

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