PHL/320 v8 Statements Analysis Worksheet PHL/320 v8 Page 2 of 2 Statements Analysis Worksheet Read each statement. Analyze each statement and source for credibility. Write a 50- to 90-word analysis for each statement. · Identify if the language used is clear or vague. · Determine if the statement is literal or figurative. · Evaluate the source to determine whether it is credible. Number Statement Source Analysis Example “We should raise taxes on the wealthy.” Bob from Accounting The language used in this statement is literal because Bob means exactly what he says; we should raise taxes on the wealthy. He does not use a simile, metaphor, or a comparison to something else to describe what he means. His language is vague because he does not provide a distinction on what monetary amount should be considered wealthy. Are people who make over $50,000 per year wealthy, $1,000,000, or somewhere in between? Bob from Accounting is not a credible source, because although he most likely possesses financial knowledge, there is no way to confirm he has reliable knowledge about government and taxation. 1. “The Aquaclear water filter- it really will improve the taste and odor of your water.” Advertisement 2. “The lot extends back to about where that large oak tree stands.” Property owner, showing his property to a potential buyer 3. “It seems clear that within the next ten years, they’ll have produced a machine that can really think.” Statement 4. “Watch out for the boss; he’s grumpy today.” Statement 5. “The arrhythmia you are experiencing indicates you should lay off the jogging for a while.” Doctor 6. “The President has determined that tax reform will be his first priority during his second term in office.” Statement 7. “Renaissance music simply lulls me to sleep.” Statement 8. “Well, let’s see. To get to the Woodward Mall, go down this street a couple of blocks and then turn right. Go through several stoplights, turn left, and go just a short way. You can’t miss it.” Statement 9. “What did I think of the concert? I thought it was pretty good. You should have been there.” Said at a party 10. During his first news conference of the year, the president said today that his administration was going to crack down even harder on international terrorism.” Statement 11. “I think I have an engine problem.” To your mechanic 12. “If you miss too many classes will be consequences.” Teacher 13. “If you do not return this vehicle with a full tank of gas, you will be charged $10 per gallon, plus a refueling fee of $20.” Rental car agent 14. “I pulled you over because you were driving too fast for the conditions.” Police officer 15. “I’ll be back later.” Mom Copyright 2020 by University of Phoenix. All rights reserved. Copyright 2020 by University of Phoenix. All rights reserved. The Internet for Distribution Digital Media for E-marketing Chapter 11 Distribution Channel Overview A distribution channel is a group of interdependent fi ...

1. PHL/320 v8
Statements Analysis Worksheet
PHL/320 v8
Page 2 of 2
Statements Analysis Worksheet
Read each statement.
Analyze each statement and source for credibility.
Write a 50- to 90-word analysis for each statement.
· Identify if the language used is clear or vague.
· Determine if the statement is literal or figurative.
· Evaluate the source to determine whether it is credible.
Number
Statement
Source
Analysis
Example
“We should raise taxes on the wealthy.”
Bob from Accounting
The language used in this statement is literal because Bob
means exactly what he says; we should raise taxes on the
wealthy. He does not use a simile, metaphor, or a comparison to
something else to describe what he means. His language is
vague because he does not provide a distinction on what
monetary amount should be considered wealthy. Are people who
make over $50,000 per year wealthy, $1,000,000, or somewhere
in between? Bob from Accounting is not a credible source,
because although he most likely possesses financial knowledge,
there is no way to confirm he has reliable knowledge about
government and taxation.
1.
“The Aquaclear water filter- it really will improve the taste and
odor of your water.”
Advertisement

2. 2.
“The lot extends back to about where that large oak tree
stands.”
Property owner, showing his property to a potential buyer
3.
“It seems clear that within the next ten years, they’ll have
produced a machine that can really think.”
Statement
4.
“Watch out for the boss; he’s grumpy today.”
Statement
5.
“The arrhythmia you are experiencing indicates you should lay
off the jogging for a while.”
Doctor
6.
“The President has determined that tax reform will be his first
priority during his second term in office.”
Statement
7.
“Renaissance music simply lulls me to sleep.”
Statement
8.
“Well, let’s see. To get to the Woodward Mall, go down this
street a couple of blocks and then turn right. Go through several
stoplights, turn left, and go just a short way. You can’t miss it.”
Statement
9.

3. “What did I think of the concert? I thought it was pretty good.
You should have been there.”
Said at a party
10.
During his first news conference of the year, the president said
today that his administration was going to crack down even
harder on international terrorism.”
Statement
11.
“I think I have an engine problem.”
To your mechanic
12.
“If you miss too many classes will be consequences.”
Teacher
13.
“If you do not return this vehicle with a full tank of gas, you
will be charged $10 per gallon, plus a refueling fee of $20.”
Rental car agent
14.
“I pulled you over because you were driving too fast for the
conditions.”
Police officer
15.
“I’ll be back later.”
Mom
Copyright 2020 by University of Phoenix. All rights reserved.
Copyright 2020 by University of Phoenix. All rights reserved.

4. The Internet for Distribution
Digital Media for E-marketing
Chapter 11
Distribution Channel Overview
A distribution channel is a group of interdependent firms that
transfer product and information from the supplier to the
consumer.
Producers
Intermediaries
Buyers
The structure of the channel can make or impede opportunities
for marketing on the internet.
11-2

5. Wholesalers buy products from the manufacturer and resell
them to retailers.
Retailers buy products from manufacturers or wholesalers and
sell to consumers.
Brokers facilitate transactions between buyers and sellers.
Agents may represent either the buyer or seller.
Manufacturer’s agents represent the seller.
Purchasing agents represent the buyer.
Channel Intermediaries
11-3
E-Business Models
11-4

6. Content Sponsorship
In this model firms create Web sites, attract traffic, and sell
advertising.
All the major portals, Google, Yahoo!, and MSN, utilize this
model.
Online magazines, newspapers, Pandora Radio, and Craigslist
use the content sponsorship model.
Content sponsorship is often used in combination with other
models to generate multiple revenue streams.
11-5
Infomediary
An infomediary is an online organization that aggregates and
distributes information.
Market research firms and product review sites are examples of
infomediaries.
Some infomediaries compensate consumers for sharing
demographic and psychographic information and receiving ads
targeted to their interests.
11-6

7. Intermediary Models
Three intermediary models are in common use on the internet.
Brokerage models.
Online exchange
Online auction
Agent models for sellers and buyers.
Online retailing.
11-7
Brokerage Models
The broker creates a market in which buyers and sellers
negotiate and complete transactions.
Online Exchanges, E*Trade, Schwab and Ameritrade, allow
customers to place trades online without a broker.
Autobytel.com is a vehicle exchange and alibaba.com is a
global marketplace.
The B2B market has also spawned brokerages.
Converge is the leading anonymous exchange for global
electronics.

8. Guru.com is an exchange for professional talent.
Online auctions are available in the B2B (uBid), B2C
(priceline), and C2C (ebay) markets.
11-8
May represent sellers or buyers, depending on who pays their
fee.
Agent models that represent sellers include:
Selling agents, such as affiliate programs.
Manufacturer’s agents represent more than one seller.
Metamediaries: Edmunds.com and TheKnot.com.
Agent Models
11-9
Affiliate Programs

9. Buy now!
Books
Electronics
Music
About us
Contact
Affiliate.com
Great products
About us
Contact
Seller.com
1. Consumer shops
2. Consumer clicks
and buys at seller
3. Seller pays affiliate
Buy now!
Books
Electronics
Music
11-10

10. Agent Models, cont.
Agent models that represent buyers include:
Shopping agents
BizRate, PriceScan, and CNET Shopper.
Reverse auctions
Priceline was the first major player in reverse auctions.
Buyer Cooperatives (buyer aggregators) pool many buyers
together to drive down prices.
Groupon and LivingSocial.
11-11
In the e-commerce model, merchants, such as Zappos, set up
storefronts online and sell to businesses and consumers.
Online companies can sell a wider and deeper assortment of
products in smaller quantities than offline stores because they
are not bound by space constraints.
The “long tail” refers to the ability to increase revenue by
selling small quantities of large numbers of products profitably
online.
Online Retailing: E-Commerce
11-12

11. Shopping Cart Abandonment
65% - 75% average
shopping cart abandonment1
2.2 average conversion rate2
Why?
High shipping prices (44% - 72%) 1
Comparison shopping (61%)
Product prices too high (25% - 43%)
Site requires a lot of personal information (35%)
Site requires registration first (34%)
Complex/confusing checkout process (11% - 27%)
Not ready to purchase (41% -56%)
Slow Web site/long process (11%/41%)
11-13

12. Types of commerce
14
M-Commerce
Mobile commerce occurs when consumers make a transaction
with a smartphone or other mobile device.
M-commerce is a subset of e-commerce.
M-commerce sales were $120 billion in 2018 in the US.
Over 2 billion users purchased an item online with a tablet or
smartphone in 2017.
11-15

13. 16
Social Commerce
Social commerce uses social media and consumer interactions to
facilitate online sales.
Product rating, recommendation and review sites allow for the
sharing aspect critical to social commerce.
Social sign-in
Over half of social media users prefer to use Facebook to sign
into a Web site.
F-Commerce
Facebook commerce is a subset of social commerce.
11-17
Distribution Channel Length and Functions
Channel length refers to the number of intermediaries between

14. the supplier and the consumer.
Direct distribution channels have no intermediaries.
Indirect distribution channels have one or more intermediaries.
Eliminating intermediaries can potentially reduce costs.
Disintermediation describes the process of eliminating
traditional intermediaries.
11-18
Functions of a Distribution Channel
Channel functions can be characterized as follows:
Transactional
Logistical
Facilitating
11-19
Transactional Functions include:
Making contact with buyers.

15. Marketing communication strategies.
Matching products to buyer’s needs.
Negotiating price.
Processing transactions.
Transactional Functions
11-20
Logistical Functions
Logistical functions include physical distribution activities,
such as:
Transportation
Inventory storage
Aggregation of products
Logistical functions are often outsourced to third-party
specialists such as UPS or FedEx.
Radio frequency identification (RFID) tags are used to transmit
a signal to scanners.
Third-party logistics providers such as UPS or FedEx can
provide value-added services.
11-21

16. 25% of deliveries require multiple delivery attempts.
30% of packages are left on doorsteps, with possibilities for
theft.
Innovative firms are introducing solutions.
Smart box.
Retail aggregator model: delivery at convenience stores or
service stations.
E-stops, storefronts for customer package pickups.
Order online for offline retail delivery.
The Last Mile Problem
11-22
Market Research
Market research is a major function of the distribution channel.
There are costs and benefits of internet-based market research.
Some information is free.
Employees can conduct research from their desks.
Internet-based information tends to be timelier.
Web-based information is in digital form.
E-marketers can receive detailed reports.
11-23

17. Financing
Intermediaries want to make it easy for customers to pay in
order to close the sale.
Credit card companies have formed Secure Electronic
Transaction (SET).
Legitimizes merchants and consumers.
Protects consumers’ credit card numbers.
U.S. customers have a maximum $50 liability for purchases
made with a stolen card.
11-24
Distribution System
There are 3 ways to define the scope of the channel as a system.
Distribution functions that are downstream from the
manufacturer to the consumer.
The supply chain, upstream from the manufacturer, working
backward to raw materials.
Consider the supply chain, manufacturer, and distribution
channel as an integrated system called the value chain or

18. integrated logistics.
11-25
Supply Chain Management
Supply chain management (SCM) refers to the coordination of
the flow of material, information, and finance.
Key functions of supply chain management are continuous
replenishment and build to order to help eliminate inventory.
Supply chain participants use enterprise resource planning
(ERP) systems to manage inventory and processes.
11-26
New Definition of Supply chain
11-27

19. Channel Management and Power
Channel management requires coordination, communication,
and control to avoid conflict among channel members.
Electronic data interchange (EDI) is effective for establishing
structural relationships among businesses.
The goal is to create an internet-based, open system so that
suppliers and buyers can seamlessly integrate their systems.
11-28
Distribution Channel Metrics:
B2C Market
Besides revenue, B2C performance metrics may include:
ROI.
Customer satisfaction levels.
Customer acquisition costs.
Conversion rates.
Average order values.

20. 11-29
Distribution Channel Metrics:
B2B Market
It is impossible to measure B2B revenue because it happens
behind company walls.
B2B metrics may include:
Time from order to delivery.
Order fill levels.
Other activities that reflect functions performed by channel
participants.
11-30
Digital Media for E-marketing
Chapter 2

21. Strategic E-Marketing and
Performance Metrics
1
Goals, Strategy, Objectives, Tactics
Goals
These are your broad outcomes.
eg. Make our book the #1 best-seller in the health and wellness
category.
Strategy
The approach you will take to accomplish your goals.
eg. Increase the amount of content we publish on social
channels supporting the book’s topics, ideas, and opinions.
©2018
2

22. Goals, Strategy, Objectives, Tactics
Objectives
These are measurable steps you will take to achieve the
strategy.
eg. Increase unique visitors from social channels to the book’s
website by 50 percent in 2019
Tactics
These are the tools or tasks used in pursuing an objective
related to a strategy.
eg. Through the use of health and wellness influencers,
leverage the exposure with branded hashtags and behind the
scenes content using Instagram Stories, Facebook Live, and
Twitter.
©2018
3
Strategic Planning
The process of developing and maintaining a strategic fit
between the organization’s goals and capabilities and its

23. changing market opportunities.
Process identifies firm’s goals for
Growth
Competitive position
Geographic scope
Other objectives, such as industry, products, channels, etc.
2-4
©2018
Strategy
Strategy is the means to achieve a goal.
E-business strategy
Deploys enterprise resources to reach performance objectives
and create competitive advantage.
E-marketing strategy
Capitalizes on information technology to reach specified
objectives.
2-5
©2018

24. ESP: Environment, Strategy,
and Performance
The ESP model illustrates the relationships among environment,
strategy, and performance.
A SWOT analysis of the business environment (E) leads to the
development of strategy (S) and the measurement of
performance (P).
Performance metrics are designed to evaluate effectiveness and
efficiency of e-business and e-marketing operations.
2-6
©2018
ESP model focuses on
strategy and performance
2-7
©2018

25. Business Models
A company will select one or more business models as
strategies to accomplish enterprise goals.
An e-business model is a method by which the organization
sustains itself in the long term using information technology,
which includes its value proposition for partners and customers
as well as its revenue streams.
2-8
©2018
SELECTING A BUSINESS MODEL
Components of business model selections:
2-9
©2018

26. Level of Commitment
to E-Business
2-10
©2018
Activity-Level E-Business Models
Online purchasing
Order processing
E-mail
Content publishing
Business intelligence (BI)
Online advertising and public relations (PR)
Online sales promotions
Pricing strategies
Social media communication
Search marketing
2-11
©2018

27. Business Process-Level
E-Business Models
Customer relationship management (CRM)
Knowledge management
Supply chain management
Community building
Affiliate programs
Database marketing
Enterprise resource planning (ERP)
Mass customization
Crowdsourcing
Freemium
Location-based marketing
2-12
©2018
Enterprise-Level
E-Business Models

28. E-commerce refers to online transactions: selling goods and
services on the internet.
Social commerce uses social media to facilitate online sales.
Direct distribution is when manufacturers sell directly to
consumers.
Content sponsorship is a form of e-commerce in which
companies sell advertising on their Web pages, YouTube
videos, or other online media.
A portal is a point of entry to the internet that combines diverse
content from many sources.
2-13
©2018
Enterprise-Level
E-Business Models, cont.
Social network sites are those that bring users together to share
interests and personal or professional profiles.
Online brokers are intermediaries who assist in the purchase
negotiations without actually representing either buyers or
sellers.
Manufacturer’s agents represent more than one seller.
Purchasing agents represent buyers.
2-14
©2018

29. Pure Play
Pure plays are businesses that began on the internet.
They represent the final level of the pyramid.
Pure plays face significant challenges.
They must compete as new brands.
They may need to take customers away from established
businesses.
Some pure plays have redefined industries: Yahoo!, Google,
Twitter, Flickr, and eBay.
2-15
©2018
The Amazon Story
Founded in 1995 as an online retailer.
Did not become profitable until Q4 2001.
In 2018, generated $233 billion in net sales,
$10 billion in net income.
Leveraged its competencies into different e-business models.

30. Core business is online retailing, “everything store.”
Established e-commerce partnerships.
Developer services provider.
Content provider.
Created the first affiliate program.
©2014 Pearson Education, Inc. publishing as Prentice Hall
2-16
The Amazon Story, cont.
Founder and CEO Jeff Bezos is not interested in expanding to
the physical world.
Amazon’s success is based on selection, lower prices, better
availability, innovative technology, and better product
information.
Which of Amazon’s core competencies do you think will drive
its strategy in the future?
2-17
©2014 Pearson Education, Inc. publishing as Prentice Hall

31. Performance Metrics
Inform Strategy
Performance metrics are specific measures designed to evaluate
the effectiveness and efficiency of operations, online and
offline.
Performance metrics:
Provide measurable outcomes.
Must be easy to understand and use.
Must be actionable.
Can motivate employees to make decisions that lead to desired
outcomes.
2-18
©2018
Web Analytics
Web analytics is the e-marketing term for the study of user
behavior on Web pages.
Metrics measure activities such as:
Click throughs from advertising.
Page views.
Number of comments posted on a blog.
Number of fans on a company Facebook page.
Conversions to sales.
2-19
©2018

32. Data Collection
Data for Web analytics are collected in several ways:
Website server logs
Cookie files
Page tags
Geolocation
2-20
©2018
Metrics Used to Measure Internet Marketing Performance
2-21
©2018

33. The Balanced Scorecard
The Balanced Scorecard provides a framework for
understanding e-marketing metrics.
The Balanced Scorecard provides 4 perspectives.
Customer perspective
Internal perspective
Learning and growth perspective
Financial perspective
2-22
©2018
The Balanced Scorecard: Customer Perspective
The customer perspective scorecard includes ways to measure
goals such as customer satisfaction, engagement and retention.
Loyalty and satisfaction measures may include percentage of
visitors who return to site, time between visits, and shopping
cart abandonment.
Customer engagement could include the number of comments,
photos or videos posted.
2-23
©2018

34. ©2018
24
The Balanced Scorecard: Internal Perspectives
The Internal perspective includes ways to measure goals related
to the quality of online services and measures for the entire
supply chain.
Number of customers who use service
Number of complaints in social media
Amount of time to answer customer e-mail
Number of updates per day
2-25
©2018

35. ©2018
26
The Balanced Scorecard: Learning and Growth Perspectives
The learning and growth perspective scorecard includes human
resources, product innovation and continuous improvement of
marketing processes.
Number of new service products to market
Number of customer complaints and fixes
Number of conversions from online leads
2-27
©2018

36. ©2018
28
The Balanced Scorecard: Financial Perspectives
The financial perspective scorecard includes ways to measure
financial goals such as sales, profits and return on investment
(ROI), including:
Sales growth and market share.
Average order value.
Individual customer profit.
2-29
©2018

37. ©2018
30
©2018
31
Social Media Performance Metrics
Awareness/Exposure
Unique visitors
Page views
Impressions
Number of searches
Search engine ranking
Number of followers, registrations, or subscribers

38. 2-32
©2018
Brand Health Metrics
Share of Voice (SOV)
Sentiment
Brand influence
2-33
©2018
Engagement Metrics
Content viewership
Tagging, bookmarking or “likes”
Membership/Follower
Number of shares
Content creation
2-34

39. ©2018
Action & Innovation Metrics
Action metrics
Click-through to an advertiser’s site.
Contact form completion or registration.
Event attendance.
Purchase.
Innovation metrics
Number of ideas shared.
Trend spotting.
2-35
©2018
Digital Media for E-marketing
Chapter 8

40. Segmentation, Targeting, Differentiation
and Positioning Strategies
1
Jim McCann started 1-800-Flowers as a traditional retailer in
New York City in 1976.
In 1995, he extended the brand to the internet and offer 24/7
worldwide delivery.
He used SAS data mining software to identify customer
segments for better targeting.
The software analyzed the clickstreams and purchasing patterns
of the firm’s 21 million customers.
The 1-800-Flowers Story
8-2

41. The 1-800-Flowers Story, cont.
1-800-Flowers can respond to the segment of one person and
their purchasing patterns.
The Web site’s Facebook page has nearly 500,000 likes, nearly
14,000 people talking about the site, and over 20,000 Twitter
followers.
Over half of its 4.6M online customers are repeat buyers.
Why do you think better segmentation and targeting has lead to
increased customer satisfaction?
8-3
Segmentation & Targeting Overview
Marketing segmentation is the process of grouping individuals
or businesses, according to similarities in use, consumption, or
benefits of a product or service.
Market targeting is the process of selecting market segments
that are most attractive to the firm.
Targeting segments can include accessibility, profitability and
growth potential.

42. 8-4
Three Markets
Three important markets sell to and buy from each other:
Business Market: Marketing of products for use in the business
operation, as components, or for resale.
Government Market: Federal, state, county, city, and other
agencies.
Consumer Market: The consumer market involves marketing
goods and services to end consumers.
8-5
Marketers create segments to identify and reach the right people
at the right time.
Demographics
Geographic location
Psychographics
Behavior with regard to the product

43. Claritas PRIZM System can also combine bases, such as
geodemographics (geography and demographics).
Market Segmentation
Bases and Variables
8-6
Segmentation Bases and
Examples of Related Variables
7
Geographic Segments
Product distribution strategy is a driving force behind
geographic segmentation.
Countries may be segmented based on internet usage.
Geographic markets may also be evaluated by rates of global
Facebook and search engine adoption, language spoken, and

44. other variables.
8-8
9
Top 10 Languages used on the internet 2018
In developed nations, users are much like the mainstream
population demographically.
Market segments recently caught the interest of e-marketers:
Millennials
Gen Z
Kids
Demographic Segments
8-10

45. Demographic Segments
Millennials
60 million people born between 1979 and 1994
over 95% use the internet.
Gen Z
born in the mid-1990s and beyond
digital natives
Kids
Under 17 of age
parents worry about the security and privacy
11
Psychographic Segments
User psychographics include:
Personality
Values
Lifestyles
Activities
Interests

46. Opinions
8-12
Interest Communities
Ways to target online communities:
Provide online discussion groups, bulletin boards, and events or
through company-owned social network pages.
Advertise on another firm’s community site.
The firm can join the communities and listen and learn from
others.
8-13
Ten Important Types of Online Communities
Entertainment communities
Social networking communities
Trading communities

47. Education communities
Scheduled events communities
Advocacy communities
Brand communities
Consumer communities
Employee communities
Special topics communities
14
Attitudes and Behaviors
Psychographic information helps e-marketers define and
describe market segments.
Some marketers believe that a segment’s attitudes toward
technology can help determine buying behavior.
Forrester Research measures attitudes toward technology with a
system called Technographics, which identified 10 consumer
segments in the U.S.
8-15

48. ©2018
16
Technographic
Segmentation
Influentials
Influentials are individuals who are opinion leaders online.
They include:
Online journalists, such as Arianna Huffington of The
Huffington Post.
Industry opinion leaders, such as Brian Solis, author, speaker,
analyst, and blogger.
Influential social network authors, such as Lady Gaga.
Innovators and entrepreneurs.
8-17

49. Two common segmentation variables are benefits sought and
product usage.
Marketers using benefit segmentation to form groups of
consumers based on the benefits they desire from products.
Marketers often segment by light, medium, and heavy product
usage.
Marketers can segment users as brand loyal, loyal to a
competitive product, switchers, and nonusers.
Behavior Segments
8-18
Benefit Segments
To determine benefits sought, marketers can look at what people
actually do online.
Online activities include connect, create, learn, enjoy, trade,
and give.
Marketers also check popular Web sites.
Microsoft, Google, and Yahoo! are consistently among the top
Web sites in most countries.
8-19

50. Usage Segments
Marketers can segment according to technology-use
characteristics such as smartphone, tablet, or PC and which
browser they use.
Mobile access: 55% of cell phone owners connect to the internet
using smartphones.
90% of smartphone users have taken an action, such as booking
a hotel, after searching.
8-20
Online engagement level
Forrester categorizes social media users according to usage
segments that are highly engaged online:
Creators who gather other people’s content, upload or share it.
Conversationalists.
Critics.
8-21

51. Social Media Engagement Segments
Based on Participation Level
22
Industry-Specific Usage Segments
Segmenting by usage varies widely from one industry or
business type to the other.
Forrester identified these three visitor segments for car websites
Explorers
Off-roaders
Cruisers
23

52. Targeting Online Customers
E-marketers select a targeting strategy.
Which targets to serve online.
Which locations.
Other factors.
Two targeting strategies are well-suited for the internet.
Niche marketing.
Micromarketing (individualized targeting).
The internet’s big promise is individualized targeting.
8-24
24
Differentiation is what a company does to the product to
convince the market that the product has specific advantages.
The goal is to obtain a differential advantage
A property of any product that is able to claim a uniqueness
over other products in its category
An advantage unique to an organization; an advantage
extremely difficult to match by a competitor.
Differentiation Online
8-25

53. Differentiation Online
A company can differentiate its offering along many
dimensions, including:
Product innovation
Mass customization
Service differentiation
Customer relationship management (CRM)
Personnel differentiation
Channel differentiation
Image differentiation.
Site atmospherics
User generated content
Efficient and timely order processing
26
Positioning is a strategy to create a desired image for a
company and its products in the minds of a chosen user

54. segment.
The e-marketer’s goal is to build a position on one or more
bases that are relevant and important to the consumer.
Firms can position based on technology, benefits, user category,
or competitive position.
The brand story must be told from the customer’s viewpoint.
Online Positioning Bases
8-27
Digital Media for E-marketing
Chapter 10
Price: The Online Value

55. 1
The Price of an iPhone App
Mobile apps have different pricing and revenue models.
Full price versions
Freemium is when companies offer a basic product for free and
an upgraded version for a fee.
Lite versions are sold at low prices with fewer features.
Subscription models offer access to content based on a recurring
fee
Ad-supported apps are typically free to the user but generate
revenue through the serving of targeted ads.
Crowdfunding supports the development of certain types of
applications.
10-2
Mobile game revenue growth

56. 3
4
App monetization strategies used
5

57. ©2018
6
Price is the sum of all values that buyers exchange for the
benefits of a good or service.
Throughout history, prices were negotiated; fixed price policies
are a modern idea.
The internet is taking us back to an era of dynamic pricing--
varying prices for individual customers.
The internet also allows for price transparency--both buyers and
sellers can view prices online.
The Internet Changes Pricing Strategies
10-7

58. Buyer & Seller Perspectives:
Buyer View
The meaning of price depends on viewpoints of the buyer and
the seller.
Buyer’s costs may include money, time, energy, and psychic
costs.
But they often enjoy many cost savings:
The internet is convenient and fast.
Self-service saves time.
One-stop shopping & integration save time.
Automation saves energy.
10-8
Online Search: “The Hunger Games” Book
9
The shift in power from seller to buyer affects pricing

59. strategies.
Buyers set prices and sellers decide whether to accept the prices
in a reverse auction.
In the B2B market, buyers bid for excess inventory at
exchanges.
In the B2G market, government buyers request proposals for
materials and labor.
Buyer power online is also based on the huge quantity of
information on the Web.
Buyer Control
10-10
Buyer & Seller Perspectives:
Seller View
The seller’s perspective includes internal and external factors.
Internal factors include pricing objectives, marketing mix
strategy, and information technology.
External factors include market structure and market efficiency.
Pricing objectives may be:
Profit oriented
Market oriented
Competition oriented
10-11

60. Upward Pressure on Prices
Online customer service is an expensive competitive necessity.
Distribution and shipping costs.
Affiliate programs add commission costs.
Site development and maintenance.
Social media maintenance.
Customer acquisition costs (CAC).
The average CAC for early online retailing was $82.
10-12
Firms can save money by using internet technology for internal
processes.
Self-service order processing.
Just-in-time inventory.
Overhead.
Customer service.
Printing and mailing.
Digital product distribution.
These efficiencies usually result in lower prices for customers
online.
Downward Pressure on Prices

61. 10-13
Market structure and market efficiency affect online pricing
strategy.
The seller’s leeway to set prices varies by market type:
Pure competition.
Monopolistic competition.
Oligopolistic competition.
Pure monopoly.
If price transparency results in a completely efficient market,
sellers will have no control over online prices.
External Factors Affect Online Pricing
10-14
Efficient Markets Mean Loss of Pricing Control

62. 10-15
Efficient Markets
A market is efficient when customers have equal access to
information about products, prices, and distribution.
In an efficient market, one would expect to find:
Lower prices.
High price elasticity.
Frequent price changes.
Smaller price changes.
Narrow price dispersion.
10-16

63. External market factors place downward pressure on internet
prices and contribute to efficiency.
Shopping agents such as BizRate.
Flash sales.
High price elasticity.
Reverse auctions.
Tax-free zones.
Venture capital.
Competition.
Frequent price changes.
Smaller price change increments.
Is the Internet an Efficient Market?
10-18
The internet does not act like an efficient market with respect to
narrow price dispersion for various reasons:
Branding and brand strength.
Differentiation.
Online pricing.
Delivery options.
Time-sensitive shoppers.

64. Switching costs.
Second-generation shopping agents.
Is the Net an Inefficient Market?
10-19
Payment Options
Electronic money uses the internet and computers to exchange
payments electronically.
Off-line e-money payment systems include:
Smart chips in cell phones.
Mobile wallets.
For one-time payments, PayPal used to be the industry standard
with over 113 million accounts worldwide.
Cryptocurrencies
10-20

65. Price setting is full of contradictions and has become an art as
much as a science.
How marketers apply pricing strategy is as important as how
much they charge.
Marketers can employ all traditional pricing strategies to the
online environment.
Pricing Strategies
10-21
Fixed Pricing
Fixed pricing (menu pricing) occurs when sellers set the price
and buyers must take it or leave it.
Everyone pays the same price.
Three common fixed pricing strategies are:
Price leadership
Promotional pricing
Freemium pricing
10-22

66. Dynamic Pricing
Dynamic pricing is the strategy of offering different prices to
different customers.
Airlines have long used dynamic pricing to price air travel.
Dynamic pricing can be initiated by the seller or buyer. There
are 2 types:
Segmented pricing
Price negotiation
10-23
Pricing levels are set based on order size and timing, demand
and supply levels, or other factors.
Becoming more common as firms collect more behavioral
information.
Segmented pricing can be effective when:
The market is segmentable.
Pricing reflects value perceptions of the segment.
Segments exhibit different demand behavior.
The costs of segmentation do not exceed revenue.
The firm must be careful not to upset customers.
Segmented Pricing
10-24

67. Geographic segment pricing can help a company relate its
pricing to regional or country factors, including competitive
pressures, local costs, etc.
Pricing differs by geographic area.
May vary by country.
May reflect higher costs of transportation, tariffs, margins, etc.
Geographic Segment Pricing
10-25
Value Segment Pricing
The seller recognizes that not all customers provide equal value
to the firm.
Pareto principle: 80% of a firm’s business comes from the top
20% of customers.
A firm’s five-star customers contribute disproportionately to
revenues and profits.

68. 10-26
Customer Value Segments
High (5 star)
Fewest number of
customers
Low (1 star)
Largest number of
customers
Customer Value

69. to the Seller
10-27
Negotiated Pricing and Auctions
Through negotiation, the price is set more than once in a back-
and-forth discussion.
Online auctions such as eBay utilize negotiated pricing.
In the C2C market, trust between buyers and sellers is an
important issue.
Ebay uses a feedback system to assist buyers.
B2B auctions, such as uBid, are an effective way to unload
surplus inventory.
10-28
Price Placement on a Web Page
10-29

70. Pure monopoly
Oligopolistic competition
Monopolistic competition
Pure competition
Government control
Market control
Area of
control
for
e
-
marketing pricing strategy
Efficient market

71. E-Marketing Communication: Paid Media
Digital Media for E-marketing
Chapter 13
Paid Media
The terms “paid media” and “advertising” are often used
interchangeably.
Paid media can engage target markets and move them to owned
media and social media conversation (earned media).
The most trusted digital media include branded Web sites, opt-
in emails, coupons and recommendations from peers and
contacts.
13-2

72. 3
4
5

73. Display Ads
Display ads can contain text, graphics, and animation and allow
users to click through.
The Interactive Advertising Bureau (IAB) claims that 80% of
online marketers follow their standard dimensions for display
ads, which can include:
Billboards
Filmstrips
Portraits
Sidekicks
Sliders
13-6
IAB Display Advertising Guidelines
13-7

74. Rich Media Ads
There are numerous formats for highly interactive rich media
ads. Some can sense mouse movement, while others have built-
in games or videos.
In-banner video ad
Expandable ad
Pop-up and Pop-under
Floating ad
Interstitial ad
Wallpaper ad
Trick banner ad
Map ad
13-8
Contextual Advertising
Contextual advertising occurs when an ad system scans a Web
page for content and serves an appropriate ad.
Google’s AdSense and Microsoft’s Bing Ads offer this service.
Behavioral advertising is a form of contextual advertising, but
follows user behavior instead of page content.
Remarketing is a tactic for communicating with users who
previously visited a Web site.
13-9

75. Lenovo Wins Big with Paid Media
Lenovo is a Chinese company that sells computers to both
business and individual consumers.
In 2008 Lenovo began a successful remarketing campaign using
specifically tailored Google ads for 3 different shopping
behaviors:
General visitors.
Those who abandoned shopping carts.
Purchasers.
They continue to use this strategy for maximum effectiveness
and efficiency.
13-10
Other Popular Ad formats
Email Advertising

76. Text link Ads
Sponsored Content
Classified Ads
Product Placements
11
Social Media Advertising
In 2017, 52% of business said that social media positively
influenced sales and revenue in their company
Four main objectives for paid branded content on social media
sites:
Build brand awareness.
Engage existing customers.
Increase size of community.
Drive traffic to an online destination.
Advertising on social media is predicted to grow faster than
search ads.
13-12

77. Paid Media on Facebook
Advertisers on Facebook can potentially reach 2 billion
members.
Facebook ads offer narrow targeting, 70 different languages,
interactive features, ease of creation, and excellent metrics.
In 2011 Facebook introduced sponsored stories that integrate
social endorsement into ads.
13-13
Twitter and LinkedIn Ads
Twitter launched promoted tweets, ads that appear as content at
the top of a page or timeline, in 2010.
Advertisers can target Twitter users by 350 narrow interests.
Advertisers can use LinkedIn Direct Ads to target by:
Job title and function.
Industry or company size.
Seniority or age.
LinkedIn Group membership.
13-14

78. Paid media in Online Videos
Marketers can place ads before, during or after videos on sites
such as YouTube and Vimeo.
In-stream videos are 15-30 seconds and can be pre-roll, mid-roll
and video takeovers.
Interactive banners and buttons.
Branded player skins.
In-text video ads.
13-15
Mobile Advertising
Mobile advertising formats available to marketers include:
Paid search
Display ads
Full screen takeovers
Messaging
Location-based ads
Video
Voice
Apps

79. 13-16
Mobile Advertising, cont.
Several issues affect the future of mobile ads.
Wireless bandwidth is currently small which affects downloads.
Limited ad-size due to small screens.
Advertising tracking requires different techniques.
Many mobile users are opposed to paying for ad time.
Despite the issues, content-sponsored ads on mobile device are
likely to increase in the future.
13-17
Paid Search
Paid search occurs when an advertiser pays a search engine a
fee:
to display its ad when users type in related keywords.
for directory submission.

80. for inclusion in a search engine index.
Keyword advertising at search engine sites prompts sponsored
text or display ads to appear on the SERP
13-18
Effective & Efficient Internet Buys
It is difficult to generalize about the most effective media
because it varies widely based on many factors.
Efficiency is easier to determine by using 3 important metrics:
CPM (cost per thousand impressions)
CPA (cost per action)
CPC (cost per click)
13-19

81. E-Marketing Communication: Owned Media
Digital Media for E-marketing
Chapter 12
1
Integrated Marketing Communication (IMC)
IMC is a cross-functional process for planning, executing, and
monitoring brand communications.
The goal is to profitably acquire, retain, and grow customers.
IMC strategy requires a thorough understanding of target
markets, the brand, its competition, and other internal and
external factors.
12-2

82. The AIDA and “think, feel, do” (hierarchy of effects) models
help guide selection of online and offline MarCom tools to meet
their goals.
The models suggest that consumers first become aware of a
product before they develop feelings and purchase it.
The models can help marketers select appropriate
communication objectives and strategies, such as:
Build brand equity.
Elicit a sales response.
IMC Goals And Strategies
12-3
Traditional Marketing Communication Tools
The five key marketing communication tools are also called the
promotion mix:
Advertising
Public relations
Sales promotion

83. Direct marketing
Personal selling
Marketers often discuss IMC in terms of senders and recipients,
media type, and owned, paid and earned media.
12-4
IMC Tools Classifications
By Sender and recipients
1 to 1
1 to many
Many to many
By Media type
Traditional
New
Social
By Communicator and Owner
Owned
Paid
Earned
5

84. Owned, Paid & Earned Media
Owned media carry communication messages from the
organization to internet users on owned channels.
Paid media are properties owned by others who are paid to carry
promotional messages.
Earned media are when individual conversations become the
channel.
12-6
12-7
Company Web site
Blog
Support forum/community
Podcast
E-mail, text messaging
Online event
Sales promotion offers
Virtual world
Online games
Gifting
Branded mobile apps
QR codes

85. Location-based marketing
Social network, microblog
SEO – natural/organic
Display ads
Sponsorships
Classified ads
Product placement
Social media ads
Mobile ads
SEO: Paid search
Digital coverage from
traditional media
Viral marketing
Wikis
Ratings and reviews
Social recommendations
E-mail
Social site discussion
Community discussion
Widgets & social apps
Location-based services
Collaborative content
OWNED
PAID
EARNED
CONTENT
customers
prospects
detractors
fans

86. IMC tactics and models
8
Owned Media
Primary goals are to
Engage consumers with positive brand content.
Entice them to pass along content to others.
Exercise CRM (customer relationship management).
All owned media can be considered content marketing.
12-9

87. Web Site
As of January 2020 there were over 1.7 billion websites on the
Internet.
The Web site is a door into a company and must provide
inviting, organized, and relevant content.
Microsites are Web sites designed for a narrow purpose.
12-10
Web Site Landing Pages
A landing page is a unique page that appears after a user clicks
on a link associated with a Web site.
Companies create many different landing pages that match key
words, current offers, ads, and more.
A/B testing is when there are two versions of a Web page and
the company conducts A/B tests to optimize clickthrough rates
and conversion to purchase.
12-11

88. Web site trends
Mobile sites
Mobile apps
Online chat
Chat bots
12
Blogs
CEOs, consultants and thought leaders create blogs to
disseminate views, promote books, etc.
Marketers use blogs to draw users to their Web sites and need to
decide:
Which platform to use?
Who will do the writing?
How often will they post?
What is the purpose of the blog?
12-13

89. E-Mail
E-mail remains the most important communication technique for
building customer relationships.
75.4% of marketers invest in e-mail campaigns.
E-mail has advantages over postal direct mail.
No postage or printing charges.
Immediate and convenient avenue for direct response using
hyperlinks.
Can be automatically individualized.
E-mail difficulties include spam filters and finding and
maintaining appropriate e-mail lists.
12-14
Short Message Services (SMS), commonly known as text
messaging, are up to 160 characters of text sent over the
internet with a cell phone or smartphone.
Marketers can build relationships by sending permission-based
information when and where consumers want to receive it.
Should be short, personalized, interactive, and relevant.
Messaging
12-15

90. Online sales promotions can build brands, databases, and
support sales.
Most do not build long term customer relationships.
Offers are short-term incentives that facilitate the movement of
products to the end user. They include:
Coupons and Promo Codes
Sampling
Contests and Sweepstakes
Sales Promotion Offers
12-16
Sales Promotion Offers, cont.
Virtual Worlds, Virtual Reality and Augmented Reality
Online games
Online gifting
Branded Mobile Apps
QR Codes and Mobile Tags
Location-Based Marketing
12-17

91. Search Engine Optimization (SEO)
Process of maximizing the number of visitors to a Web or social
media site by ensuring that either
the site name and links appear high on a search engine results
page for appropriate key words; or
ads on search engine sites get a high click through
Search marketing is an umbrella term that refers to the act of
marketing via search engines
Two types of Search marketing
Natural search (also called organic search)
Paid search
18
Natural Search
Natural search (organic search) involves optimizing a Web site
so it will appear near the top of search engine results.
When Web sites are optimized for contents that hold keywords,

92. search engines know how to categorize the site.
12-19
Natural Search, cont.
Principles of SEO (search engine optimization) include:
Spread fresh content all over the Web
Design for relevance and popularity
Optimize content
UX of website
Use a Vanity URL
Image search
Integrate social media and search strategy
Adjust site continuously to changing search algorithms
20
Vertical Search

93. Vertical search is site-specific search on specialized topics,
such as travel or books that helps users find what they are
looking for quickly.
Hotels, for example, would want to be listed on a vertical search
site such as TripAdvisor.
Vertical search site examples include:
ZoomInfo
LinkedIn
Guru.com
Autobytel
CareerBuilder
Youtube
iTunes
12-21
Owned Media Performance Metrics
Marketers use Web analytics for company-owned Web sites and
blogs.
For owned media, sales promotions, and direct marketing, there
are also appropriate metrics.
Podcasts: number of downloads and length of time listening.
Branded mobile apps: number of downloads, updates and
actions.
Visits to sales promotion game sites.
Communication opt-in from content participants
Number of email messages read or forwarded to a friend.

94. 12-22
Digital Media for E-marketing
Chapter 9
Product: The Online Offer
1

95. In 1998, co-founders Brin and Page delivered an innovative new
search strategy that ranked results on popularity as well as
keywords.
Today, Google performs over 5.6 billion searches a day in 181
countries, speaks 146 languages and is the most-visited U.S.
Web site.
Generated $160B in revenue in 2019 and continues to grow in
sales, new markets, and new products offered.
The Google Story
9-2
©2018
The Google Story, cont.
Uses a media e-business model to generate revenue, 88% of its
revenues from advertising.
Google’s product mix includes search products, advertising
products, applications, hardware and many enterprise products.
Pays close attention to user value, keeps costs low, and delivers
eyeballs to advertisers.
What types of products do you think Google will launch next?
9-3
©2018

96. Many Products Capitalize
On Internet Properties
A product is a bundle of benefits that satisfies needs of
organizations or consumers.
Includes goods, services, ideas, people, and places.
Products such as search engines are unique to the internet while
others simply use the internet as a new distribution channel.
Organizations use research to determine what is important to
customers when creating new products.
The marketing mix 4 Ps and CRM work together to produce
relational and transactional outcomes with consumers.
9-4
©2018
Marketing Mix & CRM Strategies & Tactics
9-5
©2018

97. Creating Customer Value Online
Customer Value = Benefits - Costs
Product decisions must be made that deliver benefits to
customers.
Attributes
Branding
Support Services
Labeling
Packaging
9-6
©2018
Attributes include quality and specific features.
Benefits are the same features from a user perspective.
The internet increases customer benefits in ways that have
revolutionized marketing.

98. Media, music, software, and other digital products can be
presented on the Web.
Mass customization is possible.
User personalization of the shopping experience can be
achieved.
Product Benefits: Attributes
9-7
©2018
Product Benefits: Branding
A brand includes a name, symbol, or other identifying
information.
When a firm registers the information with the U.S. Patent
Office, it becomes a trademark and is legally protected.
A brand represents a promise or value proposition to its
customers.
Delivering on this promise builds trust, lowers risk, and helps
customers by reducing stress of making product switching
decisions.
9-8
©2018

99. Brand Equity
Brand equity is the intangible value of a brand, measured in
dollars.
A great brand taps into popular culture and touches consumers.
9-9
©2018
A Great Brand Intersects with Popular Culture and Touches
Consumers
9-10
©2018

100. What makes a good brand?
©2018
11InterbrandBrandZInternal clarity
Internal commitment to the brand
Responsive to market changes
Governance
Customer relevance
Authenticity
Differentiation from other brands
Touchpoint consistency
Positive presence in social media
Deep customer understanding
Generate “love”
Meet expectations
Different and unique in a positive way
Brand of choice
Brand Relationships and Social Media
The explosion of social media sites escalates the brand
relationship process with peer-to-peer communication about
brands.
Ernst & Young found that 63% of entertainment and media
CEOs used social media to build brands.
Forrester Research identified 3 roles for social media in
branding:
Build trust.

101. Differentiate the brand.
Nurture consumers to build brand loyalty.
9-12
©2018
5 Levels of Brand Relationship Intensity
9-13
©2018
Firms can use existing brand names or create new brands on the
internet.
Some firms may use different names offline and online to avoid
risk if the new product or channel should fail.
Sports Illustrated created thriveonline.com.
Wired originally changed its online version name to Hotwired.
Branding Decisions for

102. Web Products
9-14
©2018
Creating New Brands for
Internet Marketing
Good brand names should:
Suggest something about the product.
Differentiate the product from competitors.
Be suitable for legal protection.
On the internet, a good brand name should be short, memorable,
easy to spell, and translate well into other languages.
9-15
©2018
Co-Branding
Co-branding occurs when two companies form an alliance and
put their brand names on a product:

103. Sports Illustrated co-brands with CNN as CNNSI.
Yahoo! Has joined with TV Guide and Gist to provide TV
listings.
EarthLink joined with Sprint in 1998 to provide ISP services.
9-16
©2018
Internet Domain Names
A URL (Uniform Resource Locator) is a Web site address.
Also called IP address and domain name.
http:// indicates that the browser should expect data using the
hypertext protocol.
The top-level may be .com or a country name, such as .mx for
Mexico or .uk for the United Kingdom.
“www” is no longer necessary and most sites register their name
with and without it.
9-17
©2018

104. Largest Top-Level Domain Names
9-18
©2018Domain DesignationTop-Level Domain NameNumber of
Hosts (millions)netNetworks 394.1comCommercial
200.5jpJapan 78.4itItaly 28.2deGermany 47.9brBrazil
46.2cnChina18.9
Internet Domain Names, cont.
The Internet Corporation for Assigned Names and Numbers
(ICANN) is a non-profit corporation that makes decisions about
protocol and names
GoDaddy and other sites provide domain registration services at
low cost.
More than 97% of words in the dictionary have already been
registered as domain names.
9-19
©2018

105. Internet Domain Names, cont.
Organizations should purchase alternative or related names and
spellings.
Coca-Cola owns cocacola.com, coca-cola.com and coke.com,
among others.
Picking the right domain name can make a huge difference in:
Directing people correctly to a site.
Building consistency in marketing communications.
9-20
©2018
Support Services
Customer support is a critical component in the value
proposition.
Customer service reps help customers with installation,
maintenance, product guarantees, service warranties, etc. to
increase customer satisfaction.
CompUSA combines online and offline channels to increase
customer support.
9-21
©2018

106. Product Benefits: Labeling
Labeling has digital equivalents in the online world.
Online labels provide information about product usage and
features.
Online labels also provide extensive legal information about the
software product.
Online firms may add the Better Business Bureau logo or
TRUSTe privacy shield.
9-22
©2018
Customer Codesign via Crowdsourcing
Internet technology allows collaboration to occur electronically
among consumers and across international borders.
Software developers often seek customer input about new
products.
They often allow users to download beta version products, test
them, and provide feedback.
Good marketers look for customer feedback to improve
products.
Some set up sites to gather customer ideas and input:

107. mystarbucksidea.com.
9-23
©2018
New-Product Strategies
for E-Marketing
Many new products, such as YouTube, Yahoo!, and Twitter,
were introduced by “one-pony” firms built around the
company’s first successful product.
Other firms have added internet products to an already
successful product mix.
Product mix strategies can help marketers integrate offline and
online strategies.
9-24
©2018
Product Mix Strategies
Firms will select one or more of the following strategies, based

108. on marketing objectives, risk tolerance, resource availability,
etc.
Discontinuous innovations are new-to-the-world products.
New-product lines are new products in a different category for
an existing brand name.
Additions to existing product lines.
9-25
©2018
Product Mix Strategies, cont.
Improvements or revisions of existing products.
Repositioned products can be targeted to different markets or
promoted for new uses.
Me-too lower-cost products.
9-26
©2018

109. ©2018
27
Advocacy
Community
Connection
Identity
Awareness
Tell others about the brand

110. Communicate with each other
Communicate with company
between p
urchases
Display the brand proudly
I
s on the list of
possibilities
Highest
intensity
Digital Media for E-marketing
Chapter 3
The E-Marketing Plan

111. The E-Marketing Planning Process
The e-marketing plan is a blueprint for e-marketing strategy
formulation and implementation.
Links the firm’s e-business strategy with technology-driven
marketing strategies.
The plan serves as a road map to guide the firm, allocate
resources, and make adjustments.
3-2
©2018

112. E-Marketing Plan
3-3
Legal – Ethical
Technology
Competition
Other Factors
internet
Markets
E
E-Marketing Plan
SWOT
E-Business
Strategy
S
P
E-Marketing Strategy
E-Marketing Mix
CRM
Performance Metrics
©2018

113. Two Common Types
Of Plans
Napkin Plan
Entrepreneurs may jot down ideas on a napkin or pad of paper.
Large companies might create a just-do-it, activity-based,
bottom-up plan.
These ad hoc plans may work and are sometimes necessary, but
not recommended.
The Venture Capital E-Marketing Plan is a more comprehensive
plan for those seeking start-up capital and long-term success.
3-4
©2018
Sources Of Funding
Where does an entrepreneur go for capital?
Bank loans
Private funds
Angel investors
Venture capitalists (VCs)

114. Venture capital investment in US companies hit $100B in 2018.
3-5
©2018
Seven-Step
E-Marketing Plan
Situation analysis
E-marketing strategic planning
Objectives
E-marketing strategy
Implementation plan
Budget
Evaluation plan
3-6
©2018
Step 1: Situation Analysis
Review the firm’s environmental factors and SWOT analysis.

115. Three key environmental factors are legal, technological and
market-related factors, which are covered in Chapters 4, 5, and
7.
SWOT examines the company’s internal strengths and
weaknesses and looks at external opportunities and threats.
3-7
©2018
SWOT Analysis Leading To
E-Marketing Objective
3-8OpportunitiesThreatsHispanic markets growing and untapped
in our industry.
Save postage costs through Facebook marketing.Pending
security law means costly software upgrades.
Competitor X is aggressively using Facebook e-
commerce.StrengthsWeaknessesStrong customer service
department.
Excellent Web/social media sites and database system.Low-tech
corporate culture.
Seasonal business: Peaks during summer months.E-Marketing
Objective: $500,000 in revenues from e-commerce in one year.
©2018

116. Step 2: E-marketing
Strategic Planning
Marketers uncover opportunities that help formulate the e-
marketing objectives.
Marketers conduct analyses to determine strategies, such as
Market Opportunity Analysis (MOA)
Demand & supply analysis for segmenting and targeting.
Segment analysis such as demographics.
Supply analysis to assist in forecasting. segment profitability
and to find competitive advantages.
3-9
©2018
Step 3: Objectives
An objective in an e-marketing plan may include the following
aspects:
Task (what is to be accomplished).
Measurable quantity (how much).
Time frame (by when).
Most e-marketing plans have multiple objectives:
Increase market share.

117. Increase the number of comments left on a blog.
3-10
©2018
Step 3: Objectives, cont.
Increase positive comments .
Increase sales revenue.
Reduce costs.
Achieve branding goals.
Increase database size.
Achieve customer relationship management goals.
Improve supply chain management.
3-11
©2018

118. Step 4: E-Marketing Strategies
Strategies related to the 4 Ps and relationship management to
achieve objectives.
Product strategies: merchandise, content, services or
advertising on its Web site.
Pricing strategies: dynamic pricing and online bidding.
Distribution strategies: direct marketing and agent e-business
models.
Marketing communication strategies.
Relationship management strategies.
3-12
©2018
Steps 2, 3, and 4 of the E-Marketing Plan
3-13
©2018
------ Step 2: Tier 1 Tasks
____ Step 4: Tier 2 Tasks

119. Step 3:
E-Marketing Objectives
Segmentation
Offer (Product)
Positioning
Differentiation
Targeting
CRM/PRM
Communication (Promotion)
Distribution (Place)
Value
(Price)

120. E-Marketing Objective-
Strategy Matrix
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121. Step 5: Implementation Plan
Tactics are used to achieve plan objectives.
Marketing mix (4 Ps) tactics.
Relationship management tactics.
Marketing organization tactics.
Staff, department structure.
Information-gathering tactics.
Website forms, cookies, feedback e-mail, social media
comments and likes, etc.
Web site log analysis, business intelligence and secondary
research.
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Step 6: Budget
The plan must identify the expected returns from marketing
investments, in order to develop:

122. Cost/benefit analysis
ROI calculation
Internal rate of return (IRR) calculation
Return on marketing investment (ROMI)
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Revenues and Costs
Revenue forecast
Intangible benefits, such as brand equity
Cost savings
E-Marketing costs
Technology costs
Site design
Salaries
Other site development expenses
Marketing communication
Social media communication
Miscellaneous
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123. Step 7: Evaluation Plan
Marketing plan success depends on continuous evaluation.
E-marketers must have tracking systems in place to measure
results.
Various metrics relate to specific plan goals.
Today’s firms are ROI driven.
E-marketers must show how intangible goals will lead to higher
revenue.
Accurate and timely metrics can help justify expenditures.
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Project Title
A E-marketing plan for Television Broadcasts Limited
Background
Scope and Objectives
Environmental analysis (SWOT)
Research and Consumer behaviour
No actual internal data and/or primary research required,
individual may make up his own results for going on
Segmentation, Targeting, Differentiation and Positioning

124. Product, Pricing, Distribution, Promotion, Others
Implementation plan
Evaluation plan
Individual E-marketing project
Application of theories in thinking process 20%
Creativeness 20%
Details 20%
Proper use of e-marketing channels 20%
Report writing 20%
Individual E-marketing project
Copyright
Students should be aware of the copyright issues involved when
using outside materials in their projects.
http://www.cityu.edu.hk/lib/copyright/index.htm
Project Title

125. A E-marketing plan for Television Broadcasts Limited
Background
Scope and Objectives
Environmental analysis (SWOT)
Research and Consumer behaviour
No actual internal data and/or primary research required,
individual may make up his own results for going on
Segmentation, Targeting, Differentiation and Positioning
Product, Pricing, Distribution, Promotion, Others
Implementation plan
Evaluation plan
Individual E-marketing project
Application of theories in thinking process 20%
Creativeness 20%
Details 20%
Proper use of e-marketing channels 20%
Report writing 20%
Individual E-marketing project
Copyright
Students should be aware of the copyright issues involved when
using outside materials in their projects.
http://www.cityu.edu.hk/lib/copyright/index.htm