Topic 10 Emarketing plan 1
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Topic 10 Emarketing plan 1 Presentation Transcript

  • 1. CHAPTER 8Slide 8.1 E-MARKETING Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
  • 2. Slide 8.2 Learning outcomes  Assess the need for separate e-business and e- marketing strategies  Create an outline e-marketing plan intended to implement the e-marketing strategy  Distinguish between marketing communication characteristics of traditional and new media. Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
  • 3. Slide 8.3 Management issues  How do we integrate traditional marketing approaches with e-marketing?  How can we use electronic communications to differentiate our products and services?  How do we redefine our marketing and communications mixes to incorporate new media? Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
  • 4. Slide 8.4 Marketing  The definition of marketing by the Chartered Institute of Marketing (http://www.cim.co.uk/) is: ‘M rke ting is the m a na g e m e nt p ro c e s s re s p o ns ible fo r a id e ntify ing , a ntic ip a ting a nd s a tis fy ing c us to m e r re q uire m e nts p ro fita bly ’  Whic h e -m a rke ting to o ls c a n a s s is t?  We b, e -m a il, d a ta ba s e s , wire le s s a nd d ig ita l te le v is io n. Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
  • 5. Slide 8.5 How do e-tools support marketing?  I e ntify ing – ho w c a n the I rne t be us e d fo r m a rke ting d nte re s e a rc h to find o ut c us to m e rs ’ ne e d s a nd wa nts  A ip a ting – a ntic ip a ting the d e m a nd fo r d ig ita l s e rvic e s ntic  Sa tis fy ing – ho w to a c hie ve c us to m e r s a tis fa c tio n thro ug h the e le c tro nic c ha nne l  Pro fita bly Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
  • 6. Figure 8.1 The e-marketing plan in the context of other plans
  • 7. Slide 8.7 E-marketing defined  Achieving marketing objectives through use of electronic communications technology  Another similar term is digital marketing Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
  • 8. Slide 8.8 E-marketing planning  A e-marketing plan is needed to detail the specific objectives of the e-business strategy through marketing activities Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
  • 9. Figure 8.2 SOSTAC™ – a generic framework for e-marketing planning
  • 10. Slide 8.10 SOSTAC  Developed by Paul Smith (1999)  Summarizes the different stages that should be involved in a marketing strategy from strategy development to implementation Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
  • 11. Is a separate e-marketing planSlide 8.11 required?  Customer demand will be underestimated  Existing and start-up competitors will gain market share  Duplication of resources  Insufficient resources will be devoted to planning  Insufficient customer data are collected  Efficiencies available through online marketing will be missed Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
  • 12. Figure 8.3 Usage of detailed e-marketing plans in UK e-commerce organizationsSource: E-consultancy (2005)
  • 13. Figure 8.4 Inputs to the e-marketing plan from situation analysis
  • 14. Slide 8.14 Situation Analysis  To understand the current and future environment in which the company operates  Involves consideration of all of these factors and will form the basis for defining objectives, strategies and tactics Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
  • 15. Slide 8.15 Demand analysis  What percentage of customer businesses have access to the Internet?  What percentage of members of the buying unit in these businesses have access to the Internet?  What percentage of customers are prepared to purchase your particular product online?  What percentage of customers with access to the Internet are not prepared to purchase online, but are influenced by web-based information to buy products offline?  What are the barriers to adoption amongst customers and how can we encourage adoption? Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
  • 16. Figure 8.5 Customer demand analysis for the car market
  • 17. Slide 8.17 Competitor Analysis  The monitoring of competitor use of e- commerce to acquire and retain customer  Companies should review:  Well-known competitors  Well-known international competitors  New Internet companies locally and worldwide Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
  • 18. Slide 8.18 Benchmarking solutions  Fina nc ia l p e rfo rm a nc e  M rke tp la c e p e rfo rm a nc e – market share and sales trends and significantly a the proportion of sales achieved through the Internet.  Bus ine s s a nd re ve nue m o d e ls – do these differ from other marketplace players?  M rke ting c o m m unic a tio ns te c hniq ue s – is the customer value proposition of a the site clear? Does the site support all stages of the buying decision from customers who are unfamiliar with the company through to existing customers, are special promotions used on a monthly or periodic basic? Beyond the competitor’s site, how do they make use of intermediary sites to promote and deliver their services?  Se rvic e s o ffe re d – what is offered beyond brochureware? Is online purchase possible, what is the level of online customer support and how much technical information is available?  I p le m e nta tio n o f s e rvic e s – these are the practical features of site design m such as aesthetics, ease of use, personalization, navigation and speed.  The 7Ps. Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
  • 19. Slide 8.19 Intermediary analysis  Identifying relevant intermediaries for a particular marketplace  Identify strategic partners when executing an online advertising campaigns  To consider the way the marketplace is operating Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
  • 20. Slide 8.20 Internal marketing audit  Bus ine s s e ffe c tive ne s s : Contribution of site to revenue (see objective setting), profitability and any indications of the corporate mission for the site. The costs of producing and updating the site will also be reviewed, i.e. cost-benefit analysis.  M rke ting e ffe c tive ne s s . These measures may include: a  leads; sales; retention; market share; brand enhancement and loyalty;  Customer service.  These measures will be assessed for each of the different product lines delivered through the web site. The way in which the elements of the marketing mix are utilized will also be reviewed.  I rne t e ffe c tive ne s s : These are specific measures that are used to nte assess the way in which the web site is used, and the characteristics of the audience.  Such measures include specialist terms such as hits and page impressions that are collected from the log file, and also more typical techniques such as focus groups and questionnaires to existing customers. From a marketing point of view, how clear the value proposition of the site for the customer, is should be noted. Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
  • 21. Slide 8.21 OBJECTIVE SETTING Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
  • 22. SMART e-marketing objectivesSlide 8.22  Specific  Measurable  Achievable  Realistic  Time-constrained Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
  • 23. Slide 8.23 Examples of SMART e- marketing objectives  Start-ups – acquiring a specific number of new customers or to sell advertising space to generate a specified revenue that will hopefully exceed investment in site creation and promotion!  Established mobile-phone operator – increase customer retention by reducing churn from 25 per cent to 20 per cent.  Established media company – increase online revenue, target of 20 per cent online contribution to revenue by offering new online services and media sales.  Established business-to-business engineering company – increase overall revenue by 5 per cent, through targeting sales in new international markets.  Reduce costs of routine customer service by 10 per cent to enable focus on delivery of specialized customer service. Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
  • 24. Assessment of the future online promotion contribution and online revenueFigure 8.6for The B2B Company, for Product A, Europe
  • 25. The Online RevenueSlide 8.25 Contribution  A measure of extent to which a company’s online presence directly impacts on the sales revenue of the organization Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
  • 26. Slide 8.26 STRATEGY Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
  • 27. Slide 8.27 De Kare Silvers ES test 1. Pro d uc t c ha ra c te ris tic s . Does the product need to be physically tried or touched before it is bought? 2. Fa m ilia rity a nd c o nfid e nc e . Considers the degree the consumer recognizes and trusts the product and brand. 3. Co ns um e r a ttribute s . These shape the buyer’s behaviour – are they amenable to online purchases in terms of access to the technology skills available and do they no longer wish to shop for a product in a traditional retail environment? Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
  • 28. Slide 8.28 ES Test results Product 1. Product 2. 3. Consumer Total characteristics Familiarity attributes (30) (10) and confidence (10) 1. Groceries  4 8 15 27 2. Mortgages 10 1  4 15 3. Travel 10 6 15 31 4. Books  8 7 23 38 Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
  • 29. Figure 8.8 Stages in target marketing strategy development
  • 30. Slide 8.30 Target market strategies  Evaluation and selection of appropriate segments and the development of appropriate offers  5 questions when developing strategy:  Who are our customers?  How are their needs changing?  Which do we target?  How can we add value?  How do we become first choice? Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
  • 31. Slide 8.31 Characteristics of new-media marketing communications  Interactivity  Intelligence  Individualization  Integration  Industry restructuring  Independence of location Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
  • 32. Summary of communication models for (a) traditional media,Figure 8.9(b) new media
  • 33. Slide 8.33 Intelligence Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
  • 34. Summary of degree of individualization for (a) traditional media (sameFigure 8.10message), (b) new media (unique messages and more information exchangebetween customers)
  • 35. Slide 8.35 Individualization Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
  • 36. Figure 8.11 Channels requiring integration as part of integrated e-marketing strategy
  • 37. Slide 8.37 Integration Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
  • 38. Slide 8.38 www.dell.com.my Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
  • 39. Examples of integratedSlide 8.39 communication tools  The internet can be used as a direct-response tool enabling customers to respond to offers and promotions publicized in other media  The web site can have a direct response or callback facility built into it.  The Internet can be used to support the buying decision even if the purchase does not occur via web site. Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
  • 40. Figure 8.12 Channel integration required for e-marketing and mixed-mode buying
  • 41. Slide 8.41 TACTICS Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
  • 42. Slide 8.42 Online value proposition  A clear differentiation of the proposition from competitors based on product features or service quality.  Target market segment(s) that the proposition will appeal to.  How the proposition will be communicated to site visitors and in all marketing communications. Developing a tag line can help this.  How the proposition is delivered across different parts of the buying process  How the proposition will be delivered and supported by resources – is the proposition genuine? Will resources be internal or external? Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
  • 43. Slide 8.43 Example OVPs  ‘Co m p a re . Buy . Sa ve ’. Kelkoo (www.kelkoo.com)  ‘Ea rth’s big g e s t s e le c tio n’. Amazon (www.amazon.com)  ‘Se a rc h the la rg e s t inve nto ry o f c a rs a nd truc ks o n the I rne t. M re tha n 1 . 5 m illio n lis ting s , up d a te d d a ily ’ ( nte o www.autotrader.com)  The Citibank site design (www.citibank.com) uses a range of techniques to illustrate its core proposition and OVP. The main messages are:  We lc o m e to Citiba nk: The o ne -s to p s o lutio n fo r a ll y o ur fina nc ia l ne e d s .  Lo o k fo r a p ro d uc t o r s e rv ic e ; Le a rn a bo ut a fina nc ia l p ro d uc t; Find a lo c a tio n. Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
  • 44. Slide 8.44 Issues with varying the mix online  Do we vary the mix online or replicate offline?  Is the offer clear – brand proposition, online offer  Is online differentiation defined?  Is online differentiation communicated?  Key online mix variables  Product  Price  Place  Promotion  Service: People, Process, Physical evidence Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
  • 45. The Marketing MixFigure 8.13 The elements of the marketing mix
  • 46. Slide 8.46 Product  Extend range (Tesco)  Narrow range (WH Smith iDTV)  Online-only products (banks)  Develop new brand (Egg)  Migrate existing brand (HSBC)  Partner with online brand (Waterstones and Amazon). Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
  • 47. Slide 8.47 Product Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
  • 48. Slide 8.48 Price  Differential pricing:  Reduce online prices due to price transparency and competition (easyJet)  Maintain price to avoid cannibalisation of offline sales (Dixon)  New pricing options (software, music):  Rental  Pay per use  Reverse auctions (B2B)  Dynamic pricing (Concert tickets). Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
  • 49. Slide 8.49 Implications for price  Increased price transparency  Downward pressure on price  New pricing approaches  Alternative pricing structure or policies Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
  • 50. Slide 8.50 Place  Place = avoiding channel conflicts  Disintermediation – sell direct  Reintermediation – partner with new intermediaries  Countermediation:  Form new intermediaries  Partnerwith existing intermediaries  Distance from intermediaries. (Abbey National) Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
  • 51. Slide 8.51 Implications on place  Place of purchase  New channel structures  Channel conflicts  Virtual organizations Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
  • 52. Slide 8.52 Promotion  Selective use of new online tools for different stages of the buying process and customer lifecycle  Online only campaigns  Integrated campaigns – incorporating online tools into communications mix. Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
  • 53. Options for the online vs offline communications mix (a) online > offline,Figure 8.14(b) similar online and offline, (c) offline > online
  • 54. Slide 8.54 Service  People  Automate – use web self-service, offer customer choice  Process  Change process for service – contact strategies  Physical evidence  Site design – differentiate or support brand  Fulfillment quality. Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
  • 55. Slide 8.55 Branding Malcolm McDonald in their classic 1992 book, Cre a ting Po we rful Bra nd s as a n id e ntifia ble p ro d uc t o r s e rvic e a ug m e nte d in s uc h a wa y tha t the buy e r o r us e r p e rc e ive s re le va nt uniq ue a d d e d va lue s whic h m a tc h the ir ne e d s m o s t c lo s e ly . Furthe rm o re , its s uc c e s s re s ults fro m be ing a ble to s us ta in the s e a d d e d va lue s in the fa c e o f c o m p e titio n. Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
  • 56. Options for changing brandSlide 8.56 identity online  Transfer traditional brand online  Extend traditional brand  Partner with existing digital brand  Create a new digital brand Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
  • 57. Figure 8.15 Percent of marketing communications budget spent on e-communications(n = 76)Source: E-consultancy (2005)
  • 58. Changes to brand perception and behaviour as a result of using theFigure 8.16Internet for researchSource: BrandNewWorld: AOL UK/Anne Molen (Cranfield School of Management)/Henley Centre, 2004
  • 59. The influence of brand knowledge on purchase. Matrix for question ‘I willFigure 8.17buy a product if …’Source: BrandNewWorld: AOL UK/Anne Molen (Cranfield School of Management)/Henley Centre, 2004
  • 60. Slide 8.60 Actions  What level of investment in the Internet channel is sufficient to deliver services?  What training of staff is required?  What new responsibilities are required for effective Internet marketing?  Are changes in organizational restructuring required?  What activities are involved in creating and maintaining the web site? Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
  • 61. Slide 8.61 Control  Conduct marketing research  Analysis of web-server log files  Intranets can be used to share information Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007