Marketing Planning & the Internet

Internet influence on planning processesInternet influence on implementation

Importance of Strategy To know where you’re going

Would you tell me, please, which way I ought to go from here? asked Alice.

That depends a good deal on where you want to get to, said the Cat.

I don’t much care where, said Alice. Then it doesn’t matter which way you go, said the Cat.

(Carroll, AAinW)

To not get there alone With others in the organization (Assume same objectives...)

Types of Planning Strategic planning

Firm-level thinking Overarching goal of long-run survival Relationship of firm to environment

Strategic marketing (==> strategic market plan) Product/market scope of a business Where, when and how to compete

Marketing management (==> marketing plan)

A Graphical Interpretation…

StrategicPlanning

StrategicMarketing

MarketingManage- ment

Central Role of Marketing Planning Two key objectives

Defining opportunities viz., “What should we do?”

Leveraging resources viz, “How should we do it?”

Goal of competitive advantage Profitable, Unique, Sustainable

Competitive Advantage and the Internet Defining opportunities (Planning)

Consumers Competition Conditions (environment, company)

Leveraging resources (Implementation) Content Channel Communication

The Internet Affects Planning

Motivation for planning

Processes for planning

Outcomes of planning Objectives Strategy structure

The Internet Affects Implementation Many strategic objectives Easier to classify business models

Product focus Brand image Product enhancement

Revenue focus Sales increase Other revenue…

Internet Business Models I Product focus

Image (brand building)http://disney.go.com/park/homepage/today/flash/index.html?clk=1004398

Incentive (cost benefits) http://www.beenz.com/us/home.ihtml

Improvement (neat extras)http://www.pg.com/docYourhome/docCrest/directory_map.html;$sessionid$GK1EIJAAAGCHNTCHEC1SQ1Q

Internet Business Models II Revenue focus

Traditional (consumer pays) Sales (marketer and consumer) Usage-based fees Content “rental” (subscription fees)

Less traditional (marketer pays) ABC’s (Alliances, banners, content sponsorship)

http://dir.yahoo.com/Business_and_Economy/Shopping_and_Services/Books/Booksellers/Arts_and_Crafts/

Commissions and click-through’s

Back to the Future

Defining opportunities Marketing research (next class)

Understanding consumers Understanding competitors Understanding conditions (internal and

external)