E-Marketing plan Moghimi

The E-Marketing Plan

Lecturer: Bahman Moghimi
Doctor of Business Administration
M.Sc. Of “e-Commerce”
University of Georgia
2013

Creating an E-Marketing Plan

 Why would a company pay so
much to design and build its
Internet presence ?

– To protect the corporate and brand
identities
– Complexity of designing e-marketing
strategies

B.Moghimi@yahoo.co.uk 3

Creating an E-Marketing Plan
 An E-Marketing Plan is a company’s blueprint for
strategic direction

 Ad hoc – Companies develop strategies without the
development of an E-Marketing Plan
• Example: www.yahoo.com

 75% of e-business will fail due to flaws in planning


A Seven Step Marketing Plan

1. Conduct a situation analysis.
2. Identify target stakeholders
3. Set objectives
4. Design marketing mix strategies to meet
those objectives
5. Design an action plan
6. Develop a budget
7. Develop an evaluation plan


Exhibit 8 - 2 Marketing Plan Process

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B.Moghimi@yahoo.co.uk

Exhibit 3. Critical Success Factors and Dangers for E-Business
Key Success Factors Key Dangers

§ Make it easy for customers to do § Don’t completely redesign a
business with you. business to become an e-business.
§ Focus on the end customer for § Don’t suspend good project
your products and services. management rules in the name of e-
§ Redesign your customer-facing business.
business processes from the end § Don’t assume technology can do
customer’s point of view. all the heavy lifting in e-business
§ Wire your company for profit: implementation.
Design a comprehensive, evolving § Don’t focus solely on current
electronic business architecture. customers for e-business.
§ Foster customer loyalty, the key § Stay alert for new competition.
to profitability in electronic
commerce.

Source: Success from Seybold (1998); danger from GartnerGroup (1999)

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The Existing Marketing Plan

• Working with existing information is the
best place to start, if you want to follow
current positing strategies.

10

Situation Analysis
Conduct an Environmental Scan

–Legal/Political Environment
•Taxation, access, copyrights, & encryption

– Technological Environment
•Communication Infrastructures
•Bandwidths, and New browsing devices

11

Situation Analysis
Conduct an Environmental Scan

–USER Trends
•Focus on how the net audience has changed over the last six
months, last year, etc…
•Are there any trends?
•Is there any important target segments coming online?

–World Economies
•Understand overseas economies, also do they have the proper
infrastructures to support what we are doing?

12

Situation Analysis

Develop a Market Opportunity Analysis

- Includes both demand & supply analysis
• Demand side: reviews potential profitability
• Supply side: reviews competition, and finds
competitive advantages

- SWOT

15

Exhibit 4. Key Internal Capabilities for E-Business
Internal Capability Examples

Customer interactions E-commerce, customer service,
distribution channels

Production and fulfillment SCM, production scheduling,
inventory management

People Culture, skills, knowledge
management, leadership and
commitment to e-business

Technology ERP systems, legacy applications,
networks, Web site, security, IT skills

Core infrastructure Financial systems, R&D, HR

Source: Adapted from Kalakota (1999)
16

Situation Analysis
Develop a Market Opportunity Analysis

 Market Opportunity Analysis includes both demand
and supply analyses.
 The demand portion reviews various market
segments in terms of potential profit.
 The supply analysis review competition in selected
segments that are under consideration
 The purpose of the supply analysis is to assist in
forecasting segment profitability and finding
competitive advantages in the online market.


Strategic Opportunities
 A Key element in setting strategic goals is to take stock of
where the company currently is and the level of commitment
that it wishes to make to a business.
 The lowest level impacts individual business activities such as
order processing.
 The next level impacts business processes such as customer
relationship management
 The next level, enterprise is where the firm automates many
business processes in a unified system
 EB = EC + BI + CRM + SCM + ERP
 ERP – the key here is to make sure that the processes work
well together in a unified system

19

Exhibit 5. Level of Commitment to E-Business

Pure Pure dot-com
(E*Trade)
Level of business impact
Business transformation
(competitive advantage, Play
industry redefinition)

Enterprise Click and Mortar
(eSchwab)

Effectiveness Customer
(Incremental sales, Business Process relationship
customer retention) management

Efficiency Brochureware,
(Cost Activity Order processing
reduction)

Source: adapted from www.mohanbirsawhney.com

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Pure Play
Advantages
 They are not held to the
 The final level is comprised
same standards of
of internet pure plays
profitability as the brick-
and-mortar stores
 Pure plays are companies  They are held to be
without brick and mortar smaller and have more
presence agile cultures able to
move quickly in response
to market fluctuations

21

Exhibit 6. Menu of Opportunities at Various Levels of Commitment

Activity Level Business Process Level Enterprise Level

Online market research Knowledge management E-tailer
Online purchasing Customer relationship Bit vendor
Brochureware management (CRM) Online exchange
Content publisher Supply chain management Online brokerage
E-mail (SCM) Metamediary
Online advertising E-Commerce: tangible Infomediary
Online sales promotions products Virtual mall
Order processing Direct selling Shopping agent
Cost reduction using Community building online Reverse auction
electronic means Affiliate program Online buyer’s coop
Negotiated pricing online Database marketing Mass-customization tools
Segmented pricing online
Content sponsorship online

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Identify Target Stakeholders
When multiple targets are identified, they should be
ranked in order of importance so resources can be
allocated accordingly

 Each market should be well profiled by its
characteristics, behavior and desires

 Firms must understand the value proposition for
each market.

23

Set Objectives
 Use carefully worded objectives that flow from
plan analyses that have a task, contain a specific
measurement device, and has a time frame for
accomplishment.

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Design Marketing Mix Strategies to
Meet the Objectives
 Strategic justification – shows how the strategy fits with
the firms overall mission and objectives
 Operational justification – identifies and quantifies the
specific process improvements that will result from the
strategy
 Technical justification – shows how technology will fit
and provide synergy with current IT capabilities
 Financial justification – examines cost/benefit analysis

25

Marketing Mix Component Rank Business Model

Product •Digital value through new products Exhibit 7

Price •Cost reduction using E-marketing
Selected
•Negotiation
•Segmented pricing E-Business

Distribution •Content sponsorship Models Are
•Direct selling
•Infomediary
•Intermediaries
Also
• Broker: Online exchange Online auction
• Agent: Manufacturer’s agent Affiliate Marketing
program
•Metamediary
•Virtual mall Strategies
•Shopping agent
•Reverse auction
•Buyer cooperative
• E-tailer bit vendor
•Tangible products

Marketing Communication •Content publishing
•E-mail
•Community building
•Online advertising
•Online sales promotion

Relationship Marketing CRM


Action Plan

An action plan will decide which strategies are best to
promote the business or company. Having decided that
an Internet presence is essential the following
considerations are necessary:

 Project Scope
 Site Development
 Site Promotion
 Site Maintenance

27

Project Scope

•To decide the level of Internet and e-commerce commitment
that is both beneficial, cost effective and advantageous to the
company.

•To evaluate the need for e-mail contact between stakeholders
and staff, and what staffing is necessary to implement such a
program.

28

Site Development
Build, Buy or Rent, the Following Considerations
Apply:

 Outsourcing – speeds completion of the project
 Personnel Cost Savings
 Faster Loading Site
 User Friendly Product
 More Professional Graphics & Information
 Outsourcers are aware of Copyright Rules

29

Site Promotion
 Register Site with Search Engines
 Use Metatags, Keywords and HTML tags
 List Site with Appropriate Directories
 Utilize Electronic Press Releases
 Link to Complimentary Web Sites
 Incorporate Web Site Address in all Media
 Consider Banner Advertising
 Consider Hiring an Outside Firm to Promote Web Site

Links to Site Promotion & Search Engines:
www.yahoo.com/ www.hotbot.com
www.excite.com http://www.adjacency.com/ 30

Exhibit 9 Adjacency (Sapient) Builds and Promotes Web Sites
for Clients
Source: www.adjacency.com

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www.google.com/addurl

32

Site Maintenance

 Always Update the Site

 Decide Whether to Outsource or Update in
House (You can use CMS)

 Evaluate the need for Human Resource for Web
Site Maintenance

33

Budgeting

Evaluate the cost/benefits analysis &
Identify Potential Revenue Streams:

 E-Commerce – Do we sell on-line?

 Content Sponsorship – Banners, Buttons,
Sponsorships

 Intermediary Fees – Broker and Agent Fees
34

Revenue Streams

 Initial funds to support a Web site come from:
– Investors
– Loans
– Firm’s operating budget

 Revenue streams that produce Internet profits
come mainly from:
– Direct sales
– Advertising sales
– Other fees
35

Cost Savings
By Selling and Marketing On-line

 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
36

Intangible Benefits
The industry is developing exponentially
creating new marketing opportunities, although
they may be hard to measure

 Goodwill
 Brand Equity
 Audience Measurement
 Public Relations
 Customer Satisfaction
37

Cost/Benefit Analysis

Analyze the cost
of e-marketing versus the benefits

Benefits Costs
 Revenue increases  ISP Costs
 Cost decreases  Hardware and
 Intangible benefits Software Costs
 Goodwill
 Design Costs
 Brand/Image Building
 Maintenance Costs
 Relationship Building

38

Evaluation Plan
Monitor and Track Site Usage
 Cognitive
Measure unique visits and impressions
 Attitudinal
Survey customers for brand satisfaction
objective: CRM, firm would use AOV
(average order value) and LTV (lifetime
customer value)
 Trans-active
Measure purchases, site traffic, previous
paths and click-through rate
39

My approach | E-marketing Strategy

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My approach | E-marketing Strategy

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E-Marketing plan Moghimi

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