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First part of a set of marketing models for eBusiness. From MAANZ MXpress course notes (www.marketing.org.au)

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  1. 1. The MAANZ MXpress Program Planning and Strategy Model Types Part 1 Dr Brian Monger Copyright January 2013. This Power Point program and the associated documents remain the intellectual property and the copyright of the author and of The Marketing Association of Australia and New Zealand Inc. These notes may be used only for personal study associated with in the above referenced course and not in any education or training program. Persons and/or corporations wishing to use these notes for any other purpose should contact MAANZ for written permission.
  2. 2. MAANZ International • MAANZ International, is a Not for Profit,  internet based professional and educational  institute which has operated for over 25 years. • MAANZ International offers Professional  Memberships; • Marketing Courses (Formal and Short) • And Marketing Publications • www.marketing.org.au  Marketing In Black and White 2
  3. 3. Dr. Brian Monger • Brian Monger is the CEO of MAANZ International and a  Professional marketer and consultant with over 40 years  experience. Marketing In Black and White 3
  4. 4. 4 Strategic Planning • Strategic planning = the “managerial process of developing and maintaining a viable fit between the organisation’s objectives, skills, and resources and its changing market opportunities.” • Two key elements of strategic planning are: ‐ The preparation of a SWOT analysis, ‐ The establishment of strategic objectives.
  5. 5. 5 Elements of a solid business planning  process • The major elements of a business planning process include the  following: – Defining the value proposition – Framing the market opportunity – Detailing how to reach customers – Developing an implementation plan – Evaluating potential external influences – Articulating the revenue model – Calculating preliminary financial projections – Establishing critical milestones – Summarizing the advantage
  6. 6. 6 Michael Porter on the Internet • ‘The key question is not whether to deploy  Internet technology – companies have no  choice if they want to stay competitive – but  how to deploy it.’ Porter, M. (2001) Strategy and the Internet,  Harvard Business Review, March 2001, 62–78.
  7. 7. 7 Influences on  eMarketing strategy Figure 1 Internal and external influences on Internet marketing strategy
  8. 8. 8 Overview of the eMarketing Planning  Process • How can information technologies assist marketers in building revenues  and market share or lowering costs?  • How can firms identify a sustainable competitive advantage with the  Internet when so little is understood about how to succeed? 
  9. 9. 9 Overview of the eMarketing Planning  Process • The best firms have clear visions that they translate, through the marketing process,  from eBusiness objectives and strategies into eMarketing goals and well‐executed  strategies and tactics for achieving those goals.  • This marketing process entails three steps: ‐ Marketing plan creation,  ‐ Plan implementation,  ‐ Evaluation/corrective action. 
  10. 10. 10 Creating an eMarketing Plan • eMarketing plan: It is a guiding, dynamic document that links the firm’s eBusiness  strategy (eBusiness model) with technology‐driven marketing strategies and lays out  details for plan implementation through marketing management. • The eMarketing plan serves as a roadmap to guide the direction of the firm, allocate  resources, and make tough decisions at critical junctures. • There are two common types of eMarketing plans: ‐ The napkin plan, ‐ The venture capital plan.
  11. 11. 11 P Legal - Ethical Technology Competition Other factors E-Business Strategy/ Model Performance Metrics SWOT E-Marketing Plan E-Marketing Strategy Implementation Marketing Mix/CRM Markets Internet E S Exhibit 3 - 1 E-Marketing Plan – Strategy Formulation and Implementation
  12. 12. 12 The Napkin Plan • Dot‐com entrepreneurs were known to simply jot their ideas on a napkin over lunch  and then run off to find financing.  • The big firm version of this is the just‐do‐it. An employee has an idea, and convinces  management to just do it.  • These plans sometimes work and are sometimes even necessary but they are not  recommended when substantial resources are involved. Sound planning and  thoughtful implementation are needed for long‐term success in business.
  13. 13. 13 The Venture Capital eMarketing Plan • Small to mid‐sized firms and entrepreneurs with start‐up ideas usually begin with a napkin plan without going through the entire traditional marketing planning process. • BUT as the firm grows and needs capital, it has to put together a comprehensive eMarketing plan. • Where does an entrepreneur go for capital? ‐ Sometimes bank loans, ‐ Most of the time, it is equity financed, ‐ Private funds (friends and family), ‐ Angel investors, ‐ Venture capitalists.
  14. 14. 14 The Venture Capital eMarketing Plan • Investors are looking for a well‐composed business plan, and more importantly, a good team to implement it. • The business plan should contain enough data and logic to prove that: – The eBusiness idea is solid, – The entrepreneur has some idea of how to run the business.
  15. 15. 15 The Venture Capital eMarketing Plan • 9 questions that every business plan should answer: 1. Who is the new venture’s customer? 2. How does the customer make decisions about buying this product or service? 3. To what degree is the value offer a compelling purchase for the customer? 4. How will the value offer be priced?
  16. 16. 16 The Venture Capital eMarketing Plan • 9 questions that every business plan should answer: 5. How will the venture reach all the identified customer segments? 6. How much does it cost (in time and resources) to acquire a customer? 7. How much does it cost to produce and deliver the product or service? 8. How much does it cost to support a customer? 9. How easy is it to retain a customer?
  17. 17. 17 The Venture Capital eMarketing Plan • VCs look for a way to get their money and profits out of the venture within a few years: ‐ The golden exit plan is to go public and issue stock in an initial public offering (IPO), ‐ As soon as the stock price rises sufficiently, the VC cashes out and moves on to another investment. • All VCs’ investments are not successful. But if even one out of 20 is an Amazon.com, the risk was well worth the reward.
  18. 18. 18 Step 2—Link eBusiness with  eMarketing Strategy • Marketers need to: 1 Review the marketing and eBusiness plans, 2 Conduct a strategic planning to help achieve the firm’s eBusiness goals + define potential revenue streams, 3 Create supporting eMarketing strategy for the eBusiness goals: A Tier one strategy: marketers design segmentation, targeting, differentiation, and positioning strategies, B Tier two strategy deals with the 4P’s and relationship management by creating strategies around the offer (product), value (pricing), distribution (place), and communication (promotion), 4 Further, marketers design customer and partner relationship strategies (CRM/PRM).
  19. 19. 19 Segmentation Targeting Value Differentiation CRM/PRM Positioning Communication Distribution Offer E-Marketing Strategy Tier 2 tasks Tier 1 tasks Exhibit 3 - 1 Formulating E-Marketing Strategy in Two Tiers
  20. 20. 20 Tier One eMarketing Strategic Planning: Segmenting &  targeting • Market opportunity analysis (MOA): • The demand analysis = market segmentation analyses to describe and evaluate the  potential profitability, sustainability, accessibility, and size of various potential  segments. • • The segment analysis in the B2C market with demographic characteristics,  geographic location, selected psychographic, and past behavior toward the  descriptors help firms identify potentially attractive markets.  Allows the firm to select its target market and understand its characteristics, behavior,  and desires in the firm’s product category.
  21. 21. 21 Tier One eMarketing Strategic Planning: Segmenting &  targeting • Tools: • ‐ Traditional segmentation analyses. • Analyzes of customer bases using cookies, database analyses, and other techniques, • Supply analysis: forecasts segment profitability + finds competitive advantages, • Study of competition to find the firm own performance advantages.: strengths and  weaknesses, eMarketing initiatives, … • Identify future industry changes.
  22. 22. 22 Tier One eMarketing Strategic Planning:  Identifying brand differentiation variables  and positioning strategies • The understanding of  the competition + the target(s)  Differentiation of the products to provide benefits perceived as important by the target.  • The positioning statement: the desired image for the brand relative to the  competition. 
  23. 23. 23 Tier Two eMarketing Strategic  Planning • The two Tiers are elaborated in an interative process:  • It is difficult to know what the brand position should be without understanding  the offer that comprises the brand promise. 
  24. 24. 24 Stages in  Internet development Figure 3 A simple framework for Internet marketing strategy development
  25. 25. 25 Strategy development process Figure 4 A ten-step strategic marketing planning process Source: McDonald, 1999
  26. 26. 26 Dynamic strategy model Figure 5 Dynamic eBusiness strategy model Source: Adapted from description in Kalakota and Robinson (2000)
  27. 27. 27 eBusiness strategy model 1. Web presence 2. E-commerce 3. Integrated e-commerce 4. eBusiness Services available Brochureware or interaction with product catalogues and customer service Transactional e-commerce on buy-side or sell-side. Systems often not integrated Buy and sell-side integrated with ERP or legacy systems. Personalisation of services Full integration between all internal organisational processes and elements of the value network Organisational scope Departments acting independently, e.g. marketing department, IS department Co-ordination through steering committee or e- commerce manager Cross-organisational Across the enterprise and beyond (extraprise) Transformation Technological infrastructure Technology and new responsibilities identified for e-commerce Internal business processes and firm structure Change to eBusiness culture, linking of business processes with partners Strategy Limited Sell-side e-commerce strategy, not well integrated with business strategy E-commerce strategy integrated with business strategy using a value-chain approach eBusiness strategy incorporated as part of business strategy
  28. 28. 28 Stage models (Quelch and Klein (1996)) Figure 6 Levels of web site development in: (a) the information to transaction model and (b) the transaction to information model of Quelch and Klein (1996)
  29. 29. 29 How Does a Firm Develop an  Online Offering? single product category several product categories Identify scope of offering problem recognition information search evaluation of alternatives purchase decision satisfaction Loyalty Disposal Identify customer decision process purchase-decision cycle egg diagram Map offering to customer decision process Online Offering
  30. 30. 30 What Is a Successful Resource  System? • Modifications to the activity system logic for  the online marketplace – Shift from physical world to virtual and back to  physical world – Shift from a supply‐side focus to a demand‐side  focus – Shift from activities to capabilities – Shift from single to multifirm systems
  31. 31. 31 Specifying a Resource System • Step 1: Identify core benefits in the value cluster • Step 2: Identify capabilities that relate to each benefit • Step 3: Link resources to each capabilities • Step 4: Identify to what degree the firm can deliver each capability • Step 5: Identify partners who can complete capabilities
  32. 32. 32 Criteria to Assess the Quality of a  Resource System • Uniqueness of the system • Links between capabilities and benefits • Links among capabilities in the system • Links among resources • Links between virtual world and physical  world business systems • Sustainable advantage
  33. 33. 33 A Six‐Step eMarketing Plan Step Tasks Situation analysis Review the firm’s environmental and SWOT analyses. Review the existing marketing plan and any other information that can be obtained about the company and its brands. Review the firm’s e-business objectives, strategies, and performance metrics. Link e-business with e-marketing strategy Identify revenue streams suggested by e-business models Tier 1 • Perform Marketing Opportunity Analysis to identify target stakeholders. Specify brand differentiation variables. Select positioning strategy. Tier 2 Design the offer, value, distribution, communication, and market/partner relationship management strategies. Objectives Identify general goals. Select target specific goals. Implementation plan Design e-marketing mix tactics. • product/service offering • pricing/valuation • distribution/supply chain • integrated communication mix Design relationship management tactics. Design information gathering tactics. Design organizational structures for implementing the plan. Budget Forecast revenues. Evaluate costs to reach goals. Evaluation plan Identify appropriate performance metrics. Exhibit 3 - 1 Marketing Plan Process
  34. 34. 34 Step 1—Situation Analysis • Planning for eMarketing does not mean starting from scratch but working with existing business,  eBusiness, and marketing plans is an excellent place to start.  Opportunities Threats • Hispanic 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. Strengths Weaknesses 1. Strong customer service department. 2. Excellent Web site and database system. 1. Low tech corporate culture 2. Seasonal business: peak is summer months. E-business Goal: Initiate e-commerce in within one year. Metric: Generate $500,000 in revenues from e-commerce during the first year. Exhibit 3 - 1 SWOT, Objective, and Metric Example from E-Business Plan
  35. 35. 35 Step 1—Situation Analysis • The organizational eBusiness plan: SWOT analysis => eBusiness strategy. • The marketing plan: gathers information about the firm’s products, the markets currently served, and so forth. • The distribution plan: identifies areas where the products are currently sold and suggests geographic gaps that might be receptive to e‐commerce. • Promotion plan information: gives clues about how the Internet fits with the firm’s current advertising, sales promotion, and other marketing communications. • The firm and brand positioning in the marketplace: Internet planners must decide how closely Web site content and promotion will follow current positioning strategies. • The marketer moves to strategy formulation.
  36. 36. 36 Environment, Strategy, and Performance (ESP) • Business environment: legal, technological, competitive, market‐related, and other environmental factors external to the firm = Opportunities and Threats, • SWOT analyses  = Strengths and Weaknesses, • eBusiness strategies + eBusiness models + eMarketing plans  = Help the firm accomplish its  overall goals, • Determine the success of the strategies and plans by measuring results. = Performance metrics, specific measures designed to evaluate the  effectiveness and efficiency of the eBusiness and eMarketing  operations.
  37. 37. 37 P Legal - Ethical Technology Competition Other factors E-Business Strategy/ Model Performance Metrics SWOT E-Marketing Plan E-Marketing Strategy Implementation Marketing Mix/CRM Markets Internet E S Exhibit 1 - 1 E-Marketing in Context: the ESP Model
  38. 38. 38 Assessing demand • Need to assess: 1. Access to Internet 2. Proportion of customers influenced by  channel 3. Proportion of customers who buy direct
  39. 39. 39 Porter’s five forces Power of suppliers Bargaining powers of customers Extent of rivalry between competitors Threat of subsitutes Threat of new entrants The business Figure 7
  40. 40. 40 Example objectives • Achieve 10 per cent online revenue contribution within two years; • achieve first or second position in category penetration in the countries within which we  operate (this is effectively online market share and can be measured through visitor rankings  such as Hitwise (Chapter 2) or better by online revenue share; • cost reduction of 10 per cent in marketing communications within two years; • increase retention of customers by 10 per cent; • increase by 20 per cent within one year the number of sales arising from a certain target  market, e.g. 18–25‐year‐olds; • create value‐added customer services not available currently; • improve customer service by providing a response to a query within two hours, 24 hours per  day, seven days a week; • all other objectives to be achieved profitably giving a return on investment in a three year  period.
  41. 41. 41 Marketing‐led design objectives • Customer acquisition – Proposition, recruitment offer • Conversion – Engage first time visitors – Clear call‐to‐action • Customer retention – Content and offers should encourage repeat visitors • Service quality • Branding – To reassure
  42. 42. 42 Risk/reward analysis Figure 8 Example of risk–reward analysis
  43. 43. • For more information about MAANZ International and articles  about Marketing, visit: • www.marketing.org.au • http://smartamarketing.wordpress.com • http://smartamarketing2.wordpress.com • .  http://www.linkedin.com/groups/MAANZ‐ SmartaMarketing‐Group‐2650856/about • Email: info@marketing.org.au • Link to this site ‐ ‐ http://www.slideshare.net/bmonger for  further presentations Marketing In Black and White 43
  44. 44. 44 END MAANZ MXPress Program

Description

First part of a set of marketing models for eBusiness. From MAANZ MXpress course notes (www.marketing.org.au)

Transcript

  1. 1. The MAANZ MXpress Program Planning and Strategy Model Types Part 1 Dr Brian Monger Copyright January 2013. This Power Point program and the associated documents remain the intellectual property and the copyright of the author and of The Marketing Association of Australia and New Zealand Inc. These notes may be used only for personal study associated with in the above referenced course and not in any education or training program. Persons and/or corporations wishing to use these notes for any other purpose should contact MAANZ for written permission.
  2. 2. MAANZ International • MAANZ International, is a Not for Profit,  internet based professional and educational  institute which has operated for over 25 years. • MAANZ International offers Professional  Memberships; • Marketing Courses (Formal and Short) • And Marketing Publications • www.marketing.org.au  Marketing In Black and White 2
  3. 3. Dr. Brian Monger • Brian Monger is the CEO of MAANZ International and a  Professional marketer and consultant with over 40 years  experience. Marketing In Black and White 3
  4. 4. 4 Strategic Planning • Strategic planning = the “managerial process of developing and maintaining a viable fit between the organisation’s objectives, skills, and resources and its changing market opportunities.” • Two key elements of strategic planning are: ‐ The preparation of a SWOT analysis, ‐ The establishment of strategic objectives.
  5. 5. 5 Elements of a solid business planning  process • The major elements of a business planning process include the  following: – Defining the value proposition – Framing the market opportunity – Detailing how to reach customers – Developing an implementation plan – Evaluating potential external influences – Articulating the revenue model – Calculating preliminary financial projections – Establishing critical milestones – Summarizing the advantage
  6. 6. 6 Michael Porter on the Internet • ‘The key question is not whether to deploy  Internet technology – companies have no  choice if they want to stay competitive – but  how to deploy it.’ Porter, M. (2001) Strategy and the Internet,  Harvard Business Review, March 2001, 62–78.
  7. 7. 7 Influences on  eMarketing strategy Figure 1 Internal and external influences on Internet marketing strategy
  8. 8. 8 Overview of the eMarketing Planning  Process • How can information technologies assist marketers in building revenues  and market share or lowering costs?  • How can firms identify a sustainable competitive advantage with the  Internet when so little is understood about how to succeed? 
  9. 9. 9 Overview of the eMarketing Planning  Process • The best firms have clear visions that they translate, through the marketing process,  from eBusiness objectives and strategies into eMarketing goals and well‐executed  strategies and tactics for achieving those goals.  • This marketing process entails three steps: ‐ Marketing plan creation,  ‐ Plan implementation,  ‐ Evaluation/corrective action. 
  10. 10. 10 Creating an eMarketing Plan • eMarketing plan: It is a guiding, dynamic document that links the firm’s eBusiness  strategy (eBusiness model) with technology‐driven marketing strategies and lays out  details for plan implementation through marketing management. • The eMarketing plan serves as a roadmap to guide the direction of the firm, allocate  resources, and make tough decisions at critical junctures. • There are two common types of eMarketing plans: ‐ The napkin plan, ‐ The venture capital plan.
  11. 11. 11 P Legal - Ethical Technology Competition Other factors E-Business Strategy/ Model Performance Metrics SWOT E-Marketing Plan E-Marketing Strategy Implementation Marketing Mix/CRM Markets Internet E S Exhibit 3 - 1 E-Marketing Plan – Strategy Formulation and Implementation
  12. 12. 12 The Napkin Plan • Dot‐com entrepreneurs were known to simply jot their ideas on a napkin over lunch  and then run off to find financing.  • The big firm version of this is the just‐do‐it. An employee has an idea, and convinces  management to just do it.  • These plans sometimes work and are sometimes even necessary but they are not  recommended when substantial resources are involved. Sound planning and  thoughtful implementation are needed for long‐term success in business.
  13. 13. 13 The Venture Capital eMarketing Plan • Small to mid‐sized firms and entrepreneurs with start‐up ideas usually begin with a napkin plan without going through the entire traditional marketing planning process. • BUT as the firm grows and needs capital, it has to put together a comprehensive eMarketing plan. • Where does an entrepreneur go for capital? ‐ Sometimes bank loans, ‐ Most of the time, it is equity financed, ‐ Private funds (friends and family), ‐ Angel investors, ‐ Venture capitalists.
  14. 14. 14 The Venture Capital eMarketing Plan • Investors are looking for a well‐composed business plan, and more importantly, a good team to implement it. • The business plan should contain enough data and logic to prove that: – The eBusiness idea is solid, – The entrepreneur has some idea of how to run the business.
  15. 15. 15 The Venture Capital eMarketing Plan • 9 questions that every business plan should answer: 1. Who is the new venture’s customer? 2. How does the customer make decisions about buying this product or service? 3. To what degree is the value offer a compelling purchase for the customer? 4. How will the value offer be priced?
  16. 16. 16 The Venture Capital eMarketing Plan • 9 questions that every business plan should answer: 5. How will the venture reach all the identified customer segments? 6. How much does it cost (in time and resources) to acquire a customer? 7. How much does it cost to produce and deliver the product or service? 8. How much does it cost to support a customer? 9. How easy is it to retain a customer?
  17. 17. 17 The Venture Capital eMarketing Plan • VCs look for a way to get their money and profits out of the venture within a few years: ‐ The golden exit plan is to go public and issue stock in an initial public offering (IPO), ‐ As soon as the stock price rises sufficiently, the VC cashes out and moves on to another investment. • All VCs’ investments are not successful. But if even one out of 20 is an Amazon.com, the risk was well worth the reward.
  18. 18. 18 Step 2—Link eBusiness with  eMarketing Strategy • Marketers need to: 1 Review the marketing and eBusiness plans, 2 Conduct a strategic planning to help achieve the firm’s eBusiness goals + define potential revenue streams, 3 Create supporting eMarketing strategy for the eBusiness goals: A Tier one strategy: marketers design segmentation, targeting, differentiation, and positioning strategies, B Tier two strategy deals with the 4P’s and relationship management by creating strategies around the offer (product), value (pricing), distribution (place), and communication (promotion), 4 Further, marketers design customer and partner relationship strategies (CRM/PRM).
  19. 19. 19 Segmentation Targeting Value Differentiation CRM/PRM Positioning Communication Distribution Offer E-Marketing Strategy Tier 2 tasks Tier 1 tasks Exhibit 3 - 1 Formulating E-Marketing Strategy in Two Tiers
  20. 20. 20 Tier One eMarketing Strategic Planning: Segmenting &  targeting • Market opportunity analysis (MOA): • The demand analysis = market segmentation analyses to describe and evaluate the  potential profitability, sustainability, accessibility, and size of various potential  segments. • • The segment analysis in the B2C market with demographic characteristics,  geographic location, selected psychographic, and past behavior toward the  descriptors help firms identify potentially attractive markets.  Allows the firm to select its target market and understand its characteristics, behavior,  and desires in the firm’s product category.
  21. 21. 21 Tier One eMarketing Strategic Planning: Segmenting &  targeting • Tools: • ‐ Traditional segmentation analyses. • Analyzes of customer bases using cookies, database analyses, and other techniques, • Supply analysis: forecasts segment profitability + finds competitive advantages, • Study of competition to find the firm own performance advantages.: strengths and  weaknesses, eMarketing initiatives, … • Identify future industry changes.
  22. 22. 22 Tier One eMarketing Strategic Planning:  Identifying brand differentiation variables  and positioning strategies • The understanding of  the competition + the target(s)  Differentiation of the products to provide benefits perceived as important by the target.  • The positioning statement: the desired image for the brand relative to the  competition. 
  23. 23. 23 Tier Two eMarketing Strategic  Planning • The two Tiers are elaborated in an interative process:  • It is difficult to know what the brand position should be without understanding  the offer that comprises the brand promise. 
  24. 24. 24 Stages in  Internet development Figure 3 A simple framework for Internet marketing strategy development
  25. 25. 25 Strategy development process Figure 4 A ten-step strategic marketing planning process Source: McDonald, 1999
  26. 26. 26 Dynamic strategy model Figure 5 Dynamic eBusiness strategy model Source: Adapted from description in Kalakota and Robinson (2000)
  27. 27. 27 eBusiness strategy model 1. Web presence 2. E-commerce 3. Integrated e-commerce 4. eBusiness Services available Brochureware or interaction with product catalogues and customer service Transactional e-commerce on buy-side or sell-side. Systems often not integrated Buy and sell-side integrated with ERP or legacy systems. Personalisation of services Full integration between all internal organisational processes and elements of the value network Organisational scope Departments acting independently, e.g. marketing department, IS department Co-ordination through steering committee or e- commerce manager Cross-organisational Across the enterprise and beyond (extraprise) Transformation Technological infrastructure Technology and new responsibilities identified for e-commerce Internal business processes and firm structure Change to eBusiness culture, linking of business processes with partners Strategy Limited Sell-side e-commerce strategy, not well integrated with business strategy E-commerce strategy integrated with business strategy using a value-chain approach eBusiness strategy incorporated as part of business strategy
  28. 28. 28 Stage models (Quelch and Klein (1996)) Figure 6 Levels of web site development in: (a) the information to transaction model and (b) the transaction to information model of Quelch and Klein (1996)
  29. 29. 29 How Does a Firm Develop an  Online Offering? single product category several product categories Identify scope of offering problem recognition information search evaluation of alternatives purchase decision satisfaction Loyalty Disposal Identify customer decision process purchase-decision cycle egg diagram Map offering to customer decision process Online Offering
  30. 30. 30 What Is a Successful Resource  System? • Modifications to the activity system logic for  the online marketplace – Shift from physical world to virtual and back to  physical world – Shift from a supply‐side focus to a demand‐side  focus – Shift from activities to capabilities – Shift from single to multifirm systems
  31. 31. 31 Specifying a Resource System • Step 1: Identify core benefits in the value cluster • Step 2: Identify capabilities that relate to each benefit • Step 3: Link resources to each capabilities • Step 4: Identify to what degree the firm can deliver each capability • Step 5: Identify partners who can complete capabilities
  32. 32. 32 Criteria to Assess the Quality of a  Resource System • Uniqueness of the system • Links between capabilities and benefits • Links among capabilities in the system • Links among resources • Links between virtual world and physical  world business systems • Sustainable advantage
  33. 33. 33 A Six‐Step eMarketing Plan Step Tasks Situation analysis Review the firm’s environmental and SWOT analyses. Review the existing marketing plan and any other information that can be obtained about the company and its brands. Review the firm’s e-business objectives, strategies, and performance metrics. Link e-business with e-marketing strategy Identify revenue streams suggested by e-business models Tier 1 • Perform Marketing Opportunity Analysis to identify target stakeholders. Specify brand differentiation variables. Select positioning strategy. Tier 2 Design the offer, value, distribution, communication, and market/partner relationship management strategies. Objectives Identify general goals. Select target specific goals. Implementation plan Design e-marketing mix tactics. • product/service offering • pricing/valuation • distribution/supply chain • integrated communication mix Design relationship management tactics. Design information gathering tactics. Design organizational structures for implementing the plan. Budget Forecast revenues. Evaluate costs to reach goals. Evaluation plan Identify appropriate performance metrics. Exhibit 3 - 1 Marketing Plan Process
  34. 34. 34 Step 1—Situation Analysis • Planning for eMarketing does not mean starting from scratch but working with existing business,  eBusiness, and marketing plans is an excellent place to start.  Opportunities Threats • Hispanic 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. Strengths Weaknesses 1. Strong customer service department. 2. Excellent Web site and database system. 1. Low tech corporate culture 2. Seasonal business: peak is summer months. E-business Goal: Initiate e-commerce in within one year. Metric: Generate $500,000 in revenues from e-commerce during the first year. Exhibit 3 - 1 SWOT, Objective, and Metric Example from E-Business Plan
  35. 35. 35 Step 1—Situation Analysis • The organizational eBusiness plan: SWOT analysis => eBusiness strategy. • The marketing plan: gathers information about the firm’s products, the markets currently served, and so forth. • The distribution plan: identifies areas where the products are currently sold and suggests geographic gaps that might be receptive to e‐commerce. • Promotion plan information: gives clues about how the Internet fits with the firm’s current advertising, sales promotion, and other marketing communications. • The firm and brand positioning in the marketplace: Internet planners must decide how closely Web site content and promotion will follow current positioning strategies. • The marketer moves to strategy formulation.
  36. 36. 36 Environment, Strategy, and Performance (ESP) • Business environment: legal, technological, competitive, market‐related, and other environmental factors external to the firm = Opportunities and Threats, • SWOT analyses  = Strengths and Weaknesses, • eBusiness strategies + eBusiness models + eMarketing plans  = Help the firm accomplish its  overall goals, • Determine the success of the strategies and plans by measuring results. = Performance metrics, specific measures designed to evaluate the  effectiveness and efficiency of the eBusiness and eMarketing  operations.
  37. 37. 37 P Legal - Ethical Technology Competition Other factors E-Business Strategy/ Model Performance Metrics SWOT E-Marketing Plan E-Marketing Strategy Implementation Marketing Mix/CRM Markets Internet E S Exhibit 1 - 1 E-Marketing in Context: the ESP Model
  38. 38. 38 Assessing demand • Need to assess: 1. Access to Internet 2. Proportion of customers influenced by  channel 3. Proportion of customers who buy direct
  39. 39. 39 Porter’s five forces Power of suppliers Bargaining powers of customers Extent of rivalry between competitors Threat of subsitutes Threat of new entrants The business Figure 7
  40. 40. 40 Example objectives • Achieve 10 per cent online revenue contribution within two years; • achieve first or second position in category penetration in the countries within which we  operate (this is effectively online market share and can be measured through visitor rankings  such as Hitwise (Chapter 2) or better by online revenue share; • cost reduction of 10 per cent in marketing communications within two years; • increase retention of customers by 10 per cent; • increase by 20 per cent within one year the number of sales arising from a certain target  market, e.g. 18–25‐year‐olds; • create value‐added customer services not available currently; • improve customer service by providing a response to a query within two hours, 24 hours per  day, seven days a week; • all other objectives to be achieved profitably giving a return on investment in a three year  period.
  41. 41. 41 Marketing‐led design objectives • Customer acquisition – Proposition, recruitment offer • Conversion – Engage first time visitors – Clear call‐to‐action • Customer retention – Content and offers should encourage repeat visitors • Service quality • Branding – To reassure
  42. 42. 42 Risk/reward analysis Figure 8 Example of risk–reward analysis
  43. 43. • For more information about MAANZ International and articles  about Marketing, visit: • www.marketing.org.au • http://smartamarketing.wordpress.com • http://smartamarketing2.wordpress.com • .  http://www.linkedin.com/groups/MAANZ‐ SmartaMarketing‐Group‐2650856/about • Email: info@marketing.org.au • Link to this site ‐ ‐ http://www.slideshare.net/bmonger for  further presentations Marketing In Black and White 43
  44. 44. 44 END MAANZ MXPress Program

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