E-Marketing Strategy
ObjectivesYou will be able to:  Explain the importance of strategic planning,   strategy, e-business strategy, and e-mar...
The Amazon Phenomenon3     "Online, you can build a store that cant      exist in real life--if we printed a catalog of  ...
Amazon.com’sValue Proposition4     Traditional Bookstore           Amazon.com                                      More ...
Amazon.com5    Founded in 1995 as an online retailer.       Did not become profitable until Q4 2001.       In 2007, gen...
Amazon.com, cont.6    Amazon’s success is based on selection,     lower prices, product availability, innovative     tech...
Strategic Planning7    A managerial process to develop and maintain a     viable fit between the organization and its    ...
ESP: Environment, Strategy, andPerformanceThe e-marketing plan flows from the organization’s overall goals and strategies...
ESP Framework     Legal- Ethical     Technology              Internet E   Competition     Other Factors                   ...
Strategy10     Strategy is the means to achieve a goal.     E-business strategy        Strategy that deploys enterprise...
Rationale for e-Business11     Strategic justification – “fit”        Alignment with the overall ‘mission’     Operatio...
Business Models12     A business model is a method for long-term      survival and a value proposition for partners,     ...
Selecting a Business Model13     A firm will select one or more business models      as strategies to accomplish enterpri...
Key Questions regarding e-14     Business     Are the business models likely to change in      my industry?     What doe...
Activity-Level Models1.   Order processing2.   Online purchasing3.   E-mail4.   Content publisher5.   Business intelligenc...
Business Process-Level Models1.   Customer relationship management (CRM)2.   Knowledge management (KM)3.   Supply chain ma...
Enterprise-Level Models1.       E-commerce, direct selling, content sponsorship2.       Portal3.       Social networking4....
Pure Play ModelsPure plays are businesses that began on the internet.   They represent the top level of the E-Business  ...
Performance Metrics19     Performance metrics are specific measures      designed to evaluate the effectiveness and      ...
Web Analytics Web analytics, commonly called metrics, is the study  of user behavior on Web pages. Metrics measure activ...
Social Engagement MetricsOnline measurement also includes metrics for evaluating Web 2.0 technologies.Social engagement ...
The Balanced Scorecard22     The Balanced Scorecard provides a framework      for understanding e-marketing metrics.     ...
Strategy Map23
The Balanced Scorecard:     Customer Perspective24     The customer perspective scorecard      includes ways to measure g...
The Balanced Scorecard:     Internal Perspectives25     The Internal perspective scorecard includes      ways to measure ...
The Balanced Scorecard:     Learning and Growth Perspectives26     The learning     and growth perspective      scorecard...
The Balanced Scorecard:Financial PerspectivesThe financial perspective scorecard includes ways to measure financial goals...
Summary28     This week, ask yourself the following questions:     What is Strategy? How do you pursue      “strategy” in...
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Emarketing Strategy Topic 6

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  • A firm may find “fit” in the following: Customer value – through product offerings differentiated from the competition Scope – which markets does the firm serve and are they growing? Price – are the products priced to appeal to markets and achieve market share and profit targets? Revenue sources – where is the money sourced? Is it plentiful enough to sustain targets over time? Connected activities – how will the firm create value? Does the firm have this capability? Implementation – does the company have the ability? Capabilities – does the firm have the financial, core competencies and HR to make the model work? Sustainability – will the model create competitive advantage?
  • Emarketing Strategy Topic 6

    1. 1. E-Marketing Strategy
    2. 2. ObjectivesYou will be able to:  Explain the importance of strategic planning, strategy, e-business strategy, and e-marketing strategy.  Identify the main e-business models at the activity, business process, and enterprise levels.  Discuss the use of performance metrics and the Balanced Scorecard to measure e- business and e-marketing performance.
    3. 3. The Amazon Phenomenon3  "Online, you can build a store that cant exist in real life--if we printed a catalog of what we offer, it would be the size of seven New York City phone books." Jeff Bezos
    4. 4. Amazon.com’sValue Proposition4  Traditional Bookstore Amazon.com More than 2,000,000  Less than 100,000 titles titles  Focus on best-sellers Broad offering on hard to find titles  Very long reorder times Max wait 6 weeks  Little information about Plenty of information, books reviews, etc. Heavily discounted  Marginal discounts prices (up to 40% off)  One-to-Many marketing One-to-One marketing
    5. 5. Amazon.com5 Founded in 1995 as an online retailer.  Did not become profitable until Q4 2001.  In 2007, generated $14.8 billion in net sales, $476 million in net income. Leveraged its competencies into different e- business models.  Established e-commerce partnerships with Target, Macy’s, and others.  Provided developer services.  Created the first affiliate program.
    6. 6. Amazon.com, cont.6 Amazon’s success is based on selection, lower prices, product availability, innovative technology, and better product information. CEO Jeff Bezos is not interested in expanding to the physical world. Which of Amazon’s core competencies do you think will drive its strategy in the future?
    7. 7. Strategic Planning7 A managerial process to develop and maintain a viable fit between the organization and its changing market opportunities. Process identifies firm’s goals for  Growth  Competitive position  Geographic scope  Other objectives, such as industry, products, etc.
    8. 8. ESP: Environment, Strategy, andPerformanceThe e-marketing plan flows from the organization’s overall goals and strategies.The ESP framework 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).
    9. 9. ESP Framework Legal- Ethical Technology Internet E Competition Other Factors Markets SWOT E-Marketing Plan E-Business S Strategy E-Marketing E-Marketing Mix Strategy CRM P Performance Metrics
    10. 10. Strategy10 Strategy is the means to achieve a goal. E-business strategy  Strategy that deploys enterprise resources to reach performance objectives, competitive advantages. E-marketing strategy  Strategy that capitalizes on information technology to reach marketing objectives.
    11. 11. Rationale for e-Business11 Strategic justification – “fit”  Alignment with the overall ‘mission’ Operational justification – process improvement  Identifies/quantifies the specific process improvements resulting from the strategy Technical justification – synergy  Shows how technology will fit and provide synergy Financial justification – ROI  Examine each metric for opportunities
    12. 12. Business Models12 A business model is a method for long-term survival and a value proposition for partners, customers, and revenue. E-business models include the use of information technology to achieve long-term goals. Firm selects one or more models as strategies to accomplish enterprise goals.
    13. 13. Selecting a Business Model13 A firm will select one or more business models as strategies to accomplish enterprise goals. Components of business model selections: 1. Customer value 2. Scope 3. Price 4. Revenue sources 5. Connected activities 6. Implementation 7. Capabilities 8. Sustainability
    14. 14. Key Questions regarding e-14 Business Are the business models likely to change in my industry? What does the answer to this question mean to my company? When do I need to be ready? How do I get there from here?
    15. 15. Activity-Level Models1. Order processing2. Online purchasing3. E-mail4. Content publisher5. Business intelligence (BI)6. Online advertising and public relations (PR)7. Online sales promotions8. Dynamic pricing strategies online
    16. 16. Business Process-Level Models1. Customer relationship management (CRM)2. Knowledge management (KM)3. Supply chain management (SCM)4. Community building online5. Database marketing6. Enterprise resource planning (ERP)7. Mass customization
    17. 17. Enterprise-Level Models1. E-commerce, direct selling, content sponsorship2. Portal3. Social networking4. Broker models  Online exchange, hub  Online auction5. Agent models  Manufacturer’s/selling agents  Shopping agent  Reverse auction
    18. 18. Pure Play ModelsPure plays are businesses that began on the internet.  They represent the top level of the E-Business 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: E*Trade, eBay, Yahoo!, MySpace.
    19. 19. Performance Metrics19 Performance metrics are specific measures designed to evaluate the effectiveness and efficiency of operations. Performance metrics:  Provide measurable outcomes.  Must be easy to understand and use.  Must be actionable.  Can be utilized for employee evaluations.
    20. 20. Web Analytics Web analytics, commonly called metrics, is the study of user behavior on Web pages. Metrics measure activities such as:  Click throughs  Visitor patterns  Length of time spent on a page or site  Conversions to sales Web analytics software helps companies analyze data on server logs for marketing purposes. What does Google offer in this area?
    21. 21. Social Engagement MetricsOnline measurement also includes metrics for evaluating Web 2.0 technologies.Social engagement metrics allow marketers to know how visitors participate, not just whether they landed on a page.  Time spent viewing a video, playing a game, or listening to music.  Writing a comment on a blog.  Downloading a MP3 file, ring tone, or other content.
    22. 22. The Balanced Scorecard22 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
    23. 23. Strategy Map23
    24. 24. The Balanced Scorecard: Customer Perspective24 The customer perspective scorecard includes ways to measure goals such as customer loyalty, satisfaction, appropriateness of target markets, etc.  Loyalty and satisfaction measures may include percentage of visitors who return to site and time between visits.  Transaction measures may include measurement of unique visitors, online sales abandoned, etc.
    25. 25. The Balanced Scorecard: Internal Perspectives25 The Internal perspective scorecard includes ways to measure goals related to the quality of online services.  Quality of online technical help such as amount of time to answer e-mail  Web page loading time  Inventory levels, inventory turns
    26. 26. The Balanced Scorecard: Learning and Growth Perspectives26 The learning and growth perspective scorecard includes ways to measure goals related to online service innovation and continuous improvement.  Average time from concept to start  Speed to match a rival’s site  Time between site relaunches
    27. 27. The Balanced Scorecard:Financial PerspectivesThe financial perspective scorecard includes ways to measure financial goals.  Sales growth and market share  Return on invested capital  Average order value  Individual customer profit
    28. 28. Summary28 This week, ask yourself the following questions: What is Strategy? How do you pursue “strategy” in e-Business? What are “e-Business Models”? What is the Balanced Scorecard and why do I care?

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