THE E-MARKETING PLAN Prepared by, Praveen Prassanan
INTRODUCTION E-marketing means using digital technologies suchas websites, mobile devices and social networking tohelp reach your customers, create awareness of yourbrand and sell your goods or services. The basics ofmarketing remain the same - creating a strategy todeliver the right messages to the right people.
E-MARKETING PLANThe E-Marketing plan is a guiding, dynamic document for e-marketingstrategy formulation and implementation. The purpose is to help thefirm achieve its desired results as measured by performance metricsaccording to the specifications of the e-business model and E-Business strategy. Although some entrepreneurs use a napkin plan toinformally sketch out their ideas, a venture capital e-marketing planwill help show that the e-business idea is solid and the entrepreneurhas an idea of how to run it.
E-MARKETING PLANNING PROCESS The e-marketing planning process entails three steps: Marketing plan creation Plan implementation Plan evaluation/corrective action.
CREATING AN E -MARKETING PLANThe e-marketing plan is a blueprint for e-marketing strategyformulation and implementation. It serves as a road map toguide the direction of the firm, allocate resources, andmake tough decisions at critical junctures.
The Napkin Plan The idea that many dot.com entrepreneurs were known to simply jot theirideas on a napkin over lunch or cocktails and then run off to find financing.This is also known as the just-do-it, activity-based, bottom-up plan. The Venture Capital E-Marketing Plan Dot.com’s can be financed privately through angel investors orfamily/friends, or through venture capitalists. Venture capitalists invest ingood ideas with competent people running the business and generally look foran exit plan to get their money and profits out of the venture within a fewyears.
SEVEN-STEP E-MARKETING PLANSeven key planning elements include Situation Analysis E-Marketing strategic planning The plan objectives E-Marketing strategy
Cont…… An Implementation Plan The Budget A Plan for Evaluating Success.
ADVANTAGES OF E-MARKETING PLAN Eliminating elements of the traditional distribution chain Increases possibilities of greater revenue Saves on traditional marketing costs (printing, postage) Increases target market to world-wide audience
COMMON QUESTIONS REGARDING E-MARKETING PLAN Why do e-marketing plans need an evaluation component? How do managers use budgeting within the e-marketing planningprocess? Why do entrepreneurs seeking funding need a venture capital e-marketing plan rather than a napkin plan?
WHY DO E-MARKETING PLANS NEED A N E VA L UAT I O N C O M P O N E N T ? Once the e-marketing plan is implemented, its success depends on continuous evaluation. In general, today’s firms are quite ROI driven. As a result, e-marketers must show how their intangible goals, such as brand building or CRM, will lead to higher revenue down the road. Also, they must present accurate and timely metrics to justify their initial and ongoing e-marketing expenditures throughout the period covered by the plan.
H OW D O M A N AG E R S U S E BU D G E T I N G WITHIN THE E-MARKETING PLANNING PROCESS?A key part of any strategic plan is to identify the expected returns from an investment. These can then bematched against costs to develop a cost/benefit analysis, ROI calculation, or internal rate of return (IRR),which management uses to determine whether the effort is worthwhile.This would include forecasting of revenue, intangible benefits, and cost savings. Revenue forecasting wouldestimate the level of Web site traffic over time, because this number affects the amount of revenue a firm canexpect to generate from its site. Revenue streams that produce Internet profits come mainly from Web sitedirect sales, advertising sales, subscription fees, affiliate referrals, sales at partner sites, commissions, and otherfees. Intangible benefits are much harder to budget for, how does a manager account for brand equity orincreased brand awareness? Putting a financial figure on such benefits is challenging but essential for e-marketers. Finally, money saved through Internet efficiencies is considered soft revenue for a firm. Examplesof savings could include those from channel markups, not having to printing direct mail advertisements,postage, etc.
WHY DO ENTREPRENEURS SEEKING FUNDING NEED A VENTURE CAPITAL E -MARKETING PLAN RATHER THAN A NAPKIN PLAN?Investors are looking for a well-composed business plan, and more importantly, agood team to implement it. The plan prepared by entrepreneurs for VCs should beabout eight to ten pages long and contain enough data and logic to prove that (1) thee-business idea is solid and (2) the entrepreneur has some idea of how to run thebusiness.Napkin plans on the other hand are not recommended when substantial resources areinvolved. This is because sound planning and thoughtful implementation are neededfor long-term success in business and e-business. This principle became increasinglyevident during the dot-com shakeout.