SlideShare a Scribd company logo
E-MARKETING, 6TH EDITION
JUDY STRAUSS AND RAYMOND FROST
Chapter 2: Strategic E-Marketing and Performance
Metrics
Strategic Planning
 Strategic planning is the “managerial process of
developing and maintaining a viable fit between the
organization’s objectives, skills, and resources and its
changing market opportunities.” (Kotler and Keller, 2008)
 Two key elements of strategic planning are:
- The preparation of a SWOT analysis,
- The establishment of strategic objectives.
SWOT Analysis
Strengths, Weaknesses, Opportunities, and Threats
 It examines:
- The company’s internal strengths and weaknesses with respect
to the environment,
- The competition looks at external opportunities and threats.
 Opportunities may help to define a target market or identify
new product opportunities, while threats are areas of exposure.
Example: The Amazon story
Strength A smart and talented team that stayed focused and
learned what it didn’t know.
Weakness No experience in:
-Selling books
-Processing credit card transactions
-Boxing books for shipment
Opportunity To sell online.
Threat A full-scale push by one of the large bookstore chains to
claim the online market.
 A company’s strengths and weaknesses in the online world
may be somewhat different from its strengths and weaknesses
in the brick-and-mortar world.
 Barnes & Noble has enormous strengths in the brick-and-
mortar world but these do not necessarily translate into
strengths in the online world:
 Channel conflict = having to explain to channel partners why
customers can purchase for less online than in the store.
Internal Capability Examples
Customer interactions E-commerce, customer service,
distribution channels
Production and fulfillment SCM, production scheduling, inventory
management
People Culture, skills, knowledge management,
leadership and commitment to e-business
Technology ERP systems, legacy applications,
networks, Web site, security, IT skills
Core infrastructure Financial systems, R&D, HR
Key Internal Capabilities for E-Business
Source: Adapted from Kalakota and Robinson (1999)
Strategic Objectives
 Growth. How much can the firm reasonably expect to grow in terms of
revenues, and how fast?
 Competitive position. How should the firm position itself against other
firms in the industry? Viable positions are:
- Industry leader (Google, Microsoft),
- Price leader (Priceline.com),
- Quality leader (Mercedes),
- Niche firm (eMarketer),
- Best customer service (Dell, Amazon).
 Geographic scope. Where should the firm serve its customers on
the continuum of local to multinational?
 Other objectives. Companies often set objectives for the number
of industries they will enter, the range of products they will offer,
the core competencies they will foster, and so on.
Point of Parity  Point
of difference
Environment, Strategy, and Performance
Exhibit 2 - 1 Focusing on Strategy and Performance
Strategy
 It is the means to achieve a goal.
 It is concerned with how the firm will achieve its
objectives, not what its goals are:
1. The firm sets its growth and other objectives,
2. It decides which strategies it will use to accomplish them,
3. The tactics are detailed plans to implement the strategies.
 It is important to note that objectives (what), strategies
(How), and tactics (detailed outline) can exist at many
different levels in a firm.
From Strategy to Electronic Strategy
 The deployment of enterprise resources to capitalize
on technologies for reaching specified objectives
that ultimately improve performance and create
sustainable competitive advantage.
 E-business strategy
 Corporate / enterprise Strategy + Information Technology
 E-marketing strategy
 Marketing strategy + Information technology
From Strategy to Electronic Strategy
• Most strategic plans explain the rationale for the chosen objectives
and strategies. There are four appropriate types of rationale:
 Strategic justification shows how the strategy fits with the
firm’s overall mission and business objectives,
 Operational justification identifies and quantifies the specific
process improvements that will result from the strategy,
 Technical justification shows how the technology will fit and
provide synergy with current information technology
capabilities,
 Financial justification examines cost/benefit analysis and uses
standard measures (ROI, NPV).
From Business Models to E-Business Models
 Business model: a method by which the organization sustains
itself in the long term, and includes its value proposition for
partners and customers as well as its revenue streams.
 A firm will select one or more business models as strategies to
accomplish enterprise goals.
 Critical components:
 Customer value. Does the model create value through its product
offerings that is differentiated in some way from that of competitors?
 Scope. Which markets do the firm serve, and are they growing? Are
these markets currently served by the firm, or will they be higher risk new
markets?
 Price. Are the firm’s products priced to appeal to markets and also
achieve company share and profit objectives?
How does a firm select
the best business models?
 Critical components (continued………….)
 Revenue sources. Where is the money coming from? Is it plentiful
enough to sustain growth and profit objectives over time?
 Connected activities. What activities will the firm need to perform to
create the value described in the model? Does the firm have these
capabilities?
 Implementation. The company must have the ability to actually make it
happen.
 Capabilities. Does the firm have the resources (financial, core
competencies, and so on) to make the selected models work?
 Sustainability. The e-business model is particularly appropriate if it will
create a competitive advantage over time.
E-Business Models
 The direct connection with information technology
makes a business model an e-business model:
 E-Business Model = Business Model + Information Technology
 Values and Revenue
 Whether online or offline, the value proposition involves
knowing what is important to the customer or partner and
delivering it better than other firms.
 How e-marketing contributes to the e-business
model?
E-Marketing Contributes to the E-Business Model
E-Marketing Increases Benefits
Online mass customization Personalization
24/7 convenience
Self-service ordering and tracking
One-stop shopping
Learning, engaging, and communicating with customers on social networking sites
E-Marketing Decreases Costs
Low cost distribution of communication messages
Low cost distribution channel for digital products
Lowers costs for transaction processing
Lowers costs for knowledge acquisition
Creates efficiencies in supply chain
Decreases the cost of customer service
E-Marketing Increases Revenues
Online transaction revenues such as product, information, advertising, and
subscriptions sales; or commission/fee on a transaction or referral
Add value to products/services and increase prices
Increase customer base by reaching new markets
Build customer relationships and thus increase current customer spending (Share of
wallet)
Menu of Strategic E-Business Models
 A key element in setting strategic objectives is to take stock of the
company's current situation and decide the level of commitment to e-
business in general and e-marketing in particular.
 Questions prior to embarking on any e-business strategies:
 Are the business models likely to change in my industry?
 What does the answer to question I mean to my company?
 When do I need to be ready?
 How do I get there from here?
Pure
Play
Enterprise
Business Process
Activity
Pure dot-com
(Amazon)
Click and Mortar
(eSchwab, most retailers)
Customer
Relationship
Management
Brochureware
E-mail
Levelofbusinessimpact
Business transformation
(competitive advantage,
industry redefinition)
Effectiveness
(customer
retention)
Efficiency
(cost
reduction)
Exhibit 2 - 1 Level of Commitment to E-business
Source: Adapted from www.mohansawhney.com
Activity Level E-Business Models
 Online purchasing.
 Firms can use the Web to place orders with suppliers, thus automating the
activity.
 Order processing.
 This occurs when online retailers automate Internet transactions created by
customers.
 E-mail.
 When organizations send e-mail communications to stakeholders, they save
printing and mailing costs.
 Content publisher.
 Companies create valuable content or services on their Web sites, draw lots of
traffic, and sell advertising. Another type of content publishing, the firm posts
information about its offerings on a Web site, thus saving printing costs =
brochureware.
Activity Level E-Business Models
 Business intelligence (BI).
 This refers to the gathering of secondary and primary information about
competitors, markets, customers, and more.
 Online advertising.
 As an activity, the firm buys advertising on someone else’s e-mail or Web site.
 Online sales promotions.
 Companies use the Internet to send samples of digital products (e.g., music or
software), or electronic coupons, among other tactics.
 Pricing strategies.
 With dynamic pricing, a firm presents different prices to various groups of
customers, even at the individual level.
Business Process Level E-Business Models
 Customer relationship management (CRM) = retaining + growing business /
individual customers through strategies that ensure their satisfaction with the
firm and its products = keep customers for the long term + increase the
number and frequency of their transactions.
 Knowledge management (KM) = combination of a firm’s database contents
+ the technology used to create the system + the transformation of data into
useful information and knowledge.
 Supply chain management (SCM) = coordination of the distribution channel
to deliver products more effectively and efficiently to customers.
 With community building, firms build Web sites to draw groups of special-
interest users. Firms invite users to chat / post e-mail on their Web sites to
attract potential customers to the site.
Business Process Level E-Business Models
 Affiliate programs
 when firms put a link to someone else’s retail Web site and
earn a commission on all purchases by referred customers.
 Database marketing
 collecting, analyzing, and disseminating electronic
information about customers, prospects, and products to
increase profits.
 Enterprise resource planning (ERP)
 a back-office system for order entry, purchasing, invoicing,
and inventory control.
 Mass customization
 Internet’s unique ability to customize marketing mixes
electronically and automatically to the individual level.
Enterprise Level E-Business Models
 E-commerce refers to online transactions: selling goods and services on the
Internet, either in one transaction or over time with an ongoing subscription.
 Direct selling refers to a type of e-commerce in which manufacturers sell directly to
consumers, eliminating intermediaries such as retailers.
 Content sponsorship online is a form of e-commerce in which companies sell
advertising either on their Web sites or in their e-mail.
 A portal is point of entry to the Internet, such as the Yahoo! and AOL Web sites. They
are portals because they provide many services in addition to search capabilities.
 Online brokers are intermediaries that assist in the purchase negotiations
without actually representing either buyers or sellers. The revenue stream in
these models is commission or fee-based:
 The brokerage model are E*Trade (online exchange), and eBay (online auction),
 Broker Vs. Agent
Enterprise Level E-Business Models
 Online agents represent either the buyer or the seller and earn a commission for
their work.
 Selling agents help a seller move product.
 Manufacturer’s agents represent manufacturing firms that sell complementary
products to avoid conflicts of interest.
 Purchasing agents represent buyers.
 An online purchasing agent is called a buyer cooperative or a buyer aggregator.
 Shopping agents help individual consumers find specific products and the best
prices online (e.g., www.mysimon.com).
 The reverse auction, allows individual buyers to enter the price they will pay for
particular items at the purchasing agent’s Web site, and sellers can agree or not.
 A virtual mall is similar to a shopping mall in which multiple online merchants are
hosted at a Web site.
Pure Play
 Pure plays = businesses that began on the Internet, even if they
subsequently added a brick-and-mortar presence.
 E.g. E*Trade is a pure play, beginning with only online trading
 Pure plays face significant challenges: They must compete as new
brands and take customers away from established brick-and-mortar
businesses.
 One way to change the rules is to invent a new e-business model, as
Yahoo! and eBay did.
An Optimized System of E-Business Models
 E-business is the continuous optimization of a firm’s business
activities through digital technology.
 Firms usually combine traditional business and e-business models.
E.g. Schwab = combined its online and offline brokerages in a
unified system.
 The challenge: customers expect a high degree of coordination
between online and offline operations.
 The danger: the established corporate culture might squash e-
commerce initiatives or slow them down with the best of intentions.
 The solution: Many businesses have spun off their e-commerce
operations as wholly owned subsidiaries or pure plays so they
can compete without the weight of the parent business.
An Optimized System of E-Business Models
 A fully optimized e-business that uses the Internet
to sell is the sum of multiple e-business activities
and processes: E-commerce, business intelligence,
customer relationship management, supply chain
management, and enterprise resource planning as
represented in the following equation:
EB = EC + BI + CRM + SCM + ERP
Performance Metrics
 The only way to know whether a company has reached its objectives
is to measure results.
 Specific measures designed to evaluate the effectiveness and efficiency of
an organization’s operations.
 Armed with this information, the company can make corrections to be sure
it accomplishes the goal.
 Performance metrics should be defined along with the strategy formulation
so the entire organization will know what results constitute successful.
 Steps in measuring strategy effectiveness:
 Translate the vision, strategy, or e-business model into components that
have measurable outcomes that various departments can use to create
action plans,
 Communicate to employees what results the firm values.
 When employee evaluations are tied to the metrics, people will be
motivated to make decisions that lead to the desired outcomes.
 Web Analytics
The Balanced Scorecard
 BEFORE, to measure success, firms used:
 Financial performance, Market share, The bottom line (profits).
 BUT these approaches are narrowly focused and place more weight
on short-term results rather than addressing the firm's long-term
sustainability.
 NOW, they use: The Balanced Scorecard
 The scorecard approach links strategy to measurement by asking
firms to consider their vision, critical success factors for accomplishing
it, and subsequent performance metrics in four areas:
Customer, internal, innovation and learning, and financial.
Customer
Perspective
Internal Business
Perspective
Innovation and
Learning
Perspective
Financial
Perspective
Goals Measures Goals Measures Goals Measures Goals Measures
Exhibit 2 - 1 The Balanced Scorecard Has Four Perspectives
Four Perspectives
 The customer perspective
 Uses measures of the value delivered to customers.
 These metrics tend to fall into four areas:
time, quality, performance and service, and cost.
 The internal perspective
 Evaluates company success at meeting customer expectations
through its internal processes.
 The learning and growth perspective
 Companies place value on continuous improvement to
existing products and services as well as on innovation in
new products.
 The financial perspective
 Income and expense metrics as well as return on
investment, sales, and market share growth.
Scorecard Benefits
 Obtain timely information to update its strategy.
 Balance long-term and short-term measures and evaluate every part of the firm
and how each contributes toward accomplishing selected goals.
 It helps firms leverage their relationships with partners and supply chain members.
 Go beyond financial metrics in measuring many different aspects that lead to
effective and efficient performance.
 Creates a long-term perspective for company sustainability.
 Forces companies to decide what is important and translate those decisions
into measurable outcomes that all employees can understand.
 A great communication tool because employees can use the scorecard as a
guide to coordinate their efforts.
 Support employee evaluation in that individual performance can be tied to
successful outcomes on the metrics.
 A way to measure intangible as well as tangible assets.
 The are flexible and allow firms to select appropriate metrics for their
goals, strategies, industry, and specific vision.

More Related Content

What's hot

Chapter 9
Chapter 9Chapter 9
Chapter 9
Nada G.Youssef
 
Kotler Keller - Marketing Management 15th edition, Chapter 01
Kotler Keller - Marketing Management 15th edition, Chapter 01Kotler Keller - Marketing Management 15th edition, Chapter 01
Kotler Keller - Marketing Management 15th edition, Chapter 01
Korea Institute of Marketing Education
 
Turban ec2012 pp_01
Turban ec2012 pp_01Turban ec2012 pp_01
Turban ec2012 pp_01
Abu Alam
 
Marketing and advertising in e commerce
Marketing and advertising in e commerceMarketing and advertising in e commerce
Marketing and advertising in e commerce
tumetr1
 
Customer relationship management and relationship marketing
Customer relationship management and relationship marketingCustomer relationship management and relationship marketing
Customer relationship management and relationship marketing
PROF.JITENDRA PATEL
 
Imperatives for market driven strategy
Imperatives for market driven strategyImperatives for market driven strategy
Imperatives for market driven strategy
raju07a
 
The e-Marketing Plan
The e-Marketing PlanThe e-Marketing Plan
The e-Marketing Plan
Usman Tariq
 
Chapter 3
Chapter 3Chapter 3
Chapter 3
Nada G.Youssef
 
Chapter 11 the internet for distribution
Chapter 11   the internet for distributionChapter 11   the internet for distribution
Chapter 11 the internet for distribution
Dr. Ankit Kesharwani
 
Business to Business Electronic Commerce
Business to Business Electronic Commerce Business to Business Electronic Commerce
Business to Business Electronic Commerce
Nurhazman Abdul Aziz
 
Chapter 1 | Intro to eMarketing
Chapter 1 | Intro to eMarketingChapter 1 | Intro to eMarketing
Chapter 1 | Intro to eMarketing
MikaStuttaford
 
Chapter 6
Chapter 6Chapter 6
Chapter 6
Nada G.Youssef
 
7 step e marketing plan
7 step e marketing plan7 step e marketing plan
7 step e marketing plan
talhamir0008
 
Chapter 8 (social commerce)
Chapter 8 (social commerce)Chapter 8 (social commerce)
Chapter 8 (social commerce)
Jawad Chaudhry
 
Chapter 10 price - the online value
Chapter 10   price - the online valueChapter 10   price - the online value
Chapter 10 price - the online value
Dr. Ankit Kesharwani
 
Chapter 8
Chapter 8Chapter 8
Chapter 8
Nada G.Youssef
 
e-Marketing Research
e-Marketing Researche-Marketing Research
e-Marketing Research
Usman Tariq
 
New market offerings
New market offeringsNew market offerings
New market offerings
Rohit Kumar
 
Kotler mm14 ch01_dppt
Kotler mm14 ch01_dpptKotler mm14 ch01_dppt
Kotler mm14 ch01_dppt
KHALED AL-SAWY
 
Chapter 12 e-marketing communication tools
Chapter 12   e-marketing communication toolsChapter 12   e-marketing communication tools
Chapter 12 e-marketing communication tools
Dr. Ankit Kesharwani
 

What's hot (20)

Chapter 9
Chapter 9Chapter 9
Chapter 9
 
Kotler Keller - Marketing Management 15th edition, Chapter 01
Kotler Keller - Marketing Management 15th edition, Chapter 01Kotler Keller - Marketing Management 15th edition, Chapter 01
Kotler Keller - Marketing Management 15th edition, Chapter 01
 
Turban ec2012 pp_01
Turban ec2012 pp_01Turban ec2012 pp_01
Turban ec2012 pp_01
 
Marketing and advertising in e commerce
Marketing and advertising in e commerceMarketing and advertising in e commerce
Marketing and advertising in e commerce
 
Customer relationship management and relationship marketing
Customer relationship management and relationship marketingCustomer relationship management and relationship marketing
Customer relationship management and relationship marketing
 
Imperatives for market driven strategy
Imperatives for market driven strategyImperatives for market driven strategy
Imperatives for market driven strategy
 
The e-Marketing Plan
The e-Marketing PlanThe e-Marketing Plan
The e-Marketing Plan
 
Chapter 3
Chapter 3Chapter 3
Chapter 3
 
Chapter 11 the internet for distribution
Chapter 11   the internet for distributionChapter 11   the internet for distribution
Chapter 11 the internet for distribution
 
Business to Business Electronic Commerce
Business to Business Electronic Commerce Business to Business Electronic Commerce
Business to Business Electronic Commerce
 
Chapter 1 | Intro to eMarketing
Chapter 1 | Intro to eMarketingChapter 1 | Intro to eMarketing
Chapter 1 | Intro to eMarketing
 
Chapter 6
Chapter 6Chapter 6
Chapter 6
 
7 step e marketing plan
7 step e marketing plan7 step e marketing plan
7 step e marketing plan
 
Chapter 8 (social commerce)
Chapter 8 (social commerce)Chapter 8 (social commerce)
Chapter 8 (social commerce)
 
Chapter 10 price - the online value
Chapter 10   price - the online valueChapter 10   price - the online value
Chapter 10 price - the online value
 
Chapter 8
Chapter 8Chapter 8
Chapter 8
 
e-Marketing Research
e-Marketing Researche-Marketing Research
e-Marketing Research
 
New market offerings
New market offeringsNew market offerings
New market offerings
 
Kotler mm14 ch01_dppt
Kotler mm14 ch01_dpptKotler mm14 ch01_dppt
Kotler mm14 ch01_dppt
 
Chapter 12 e-marketing communication tools
Chapter 12   e-marketing communication toolsChapter 12   e-marketing communication tools
Chapter 12 e-marketing communication tools
 

Viewers also liked

E Marketing Lecture Part 2
E Marketing Lecture Part 2E Marketing Lecture Part 2
E Marketing Lecture Part 2
Gerald Fricke
 
"Miss Dich selbst", Kick Off Innovationsprojekt, WS 2013/14
"Miss Dich selbst", Kick Off Innovationsprojekt, WS 2013/14"Miss Dich selbst", Kick Off Innovationsprojekt, WS 2013/14
"Miss Dich selbst", Kick Off Innovationsprojekt, WS 2013/14
Gerald Fricke
 
Online referral marketing
Online referral marketingOnline referral marketing
Online referral marketing
Dr. Ankit Kesharwani
 
Google ad words December 2013
Google ad words   December 2013Google ad words   December 2013
Google ad words December 2013
Dr. Ankit Kesharwani
 
Sem workwhop 07 april 139 (1)
Sem workwhop 07 april 139 (1)Sem workwhop 07 april 139 (1)
Sem workwhop 07 april 139 (1)
Dr. Ankit Kesharwani
 
Facebook analytics
Facebook analyticsFacebook analytics
Facebook analytics
Dr. Ankit Kesharwani
 
Chapter 18 - Managing Mass Communications and Personal Communications
Chapter 18 - Managing Mass Communications and Personal CommunicationsChapter 18 - Managing Mass Communications and Personal Communications
Chapter 18 - Managing Mass Communications and Personal Communications
Dr. Ankit Kesharwani
 
Web 2.0 Seminar, TU Braunschweig
Web 2.0 Seminar, TU BraunschweigWeb 2.0 Seminar, TU Braunschweig
Web 2.0 Seminar, TU Braunschweig
Gerald Fricke
 
Google AdWords
Google AdWordsGoogle AdWords
Google AdWords
Dr. Ankit Kesharwani
 
Setting Produc Strategies and Branding
Setting Produc Strategies and BrandingSetting Produc Strategies and Branding
Setting Produc Strategies and Branding
Dr. Ankit Kesharwani
 
Social Media - E-Marketing Plan (Part 1)
Social Media - E-Marketing Plan  (Part 1)Social Media - E-Marketing Plan  (Part 1)
Social Media - E-Marketing Plan (Part 1)
eMarketingAG
 
Aim (17 dec 2010)
Aim (17 dec 2010)Aim (17 dec 2010)
Aim (17 dec 2010)
Dr. Ankit Kesharwani
 
Chapter 9 product - the online offer
Chapter 9   product - the online offerChapter 9   product - the online offer
Chapter 9 product - the online offer
Dr. Ankit Kesharwani
 
Chapter 8 traffic building
Chapter 8   traffic buildingChapter 8   traffic building
Chapter 8 traffic building
Dr. Ankit Kesharwani
 
Chapter 22 - Managing a Holistics Marketing Organizations
Chapter 22 - Managing a Holistics Marketing OrganizationsChapter 22 - Managing a Holistics Marketing Organizations
Chapter 22 - Managing a Holistics Marketing Organizations
Dr. Ankit Kesharwani
 
Chapter 4 building inclusive e-markets
Chapter 4   building inclusive e-marketsChapter 4   building inclusive e-markets
Chapter 4 building inclusive e-markets
Dr. Ankit Kesharwani
 
Designing and Managing Services
Designing and Managing ServicesDesigning and Managing Services
Designing and Managing Services
Dr. Ankit Kesharwani
 
Google ad sense (Dec 2013)
Google ad sense (Dec 2013)Google ad sense (Dec 2013)
Google ad sense (Dec 2013)
Dr. Ankit Kesharwani
 
Communications 2.0. Summer School 2010
Communications 2.0. Summer School 2010Communications 2.0. Summer School 2010
Communications 2.0. Summer School 2010
Gerald Fricke
 
Chapter 6 e-marketing research
Chapter 6   e-marketing researchChapter 6   e-marketing research
Chapter 6 e-marketing research
Dr. Ankit Kesharwani
 

Viewers also liked (20)

E Marketing Lecture Part 2
E Marketing Lecture Part 2E Marketing Lecture Part 2
E Marketing Lecture Part 2
 
"Miss Dich selbst", Kick Off Innovationsprojekt, WS 2013/14
"Miss Dich selbst", Kick Off Innovationsprojekt, WS 2013/14"Miss Dich selbst", Kick Off Innovationsprojekt, WS 2013/14
"Miss Dich selbst", Kick Off Innovationsprojekt, WS 2013/14
 
Online referral marketing
Online referral marketingOnline referral marketing
Online referral marketing
 
Google ad words December 2013
Google ad words   December 2013Google ad words   December 2013
Google ad words December 2013
 
Sem workwhop 07 april 139 (1)
Sem workwhop 07 april 139 (1)Sem workwhop 07 april 139 (1)
Sem workwhop 07 april 139 (1)
 
Facebook analytics
Facebook analyticsFacebook analytics
Facebook analytics
 
Chapter 18 - Managing Mass Communications and Personal Communications
Chapter 18 - Managing Mass Communications and Personal CommunicationsChapter 18 - Managing Mass Communications and Personal Communications
Chapter 18 - Managing Mass Communications and Personal Communications
 
Web 2.0 Seminar, TU Braunschweig
Web 2.0 Seminar, TU BraunschweigWeb 2.0 Seminar, TU Braunschweig
Web 2.0 Seminar, TU Braunschweig
 
Google AdWords
Google AdWordsGoogle AdWords
Google AdWords
 
Setting Produc Strategies and Branding
Setting Produc Strategies and BrandingSetting Produc Strategies and Branding
Setting Produc Strategies and Branding
 
Social Media - E-Marketing Plan (Part 1)
Social Media - E-Marketing Plan  (Part 1)Social Media - E-Marketing Plan  (Part 1)
Social Media - E-Marketing Plan (Part 1)
 
Aim (17 dec 2010)
Aim (17 dec 2010)Aim (17 dec 2010)
Aim (17 dec 2010)
 
Chapter 9 product - the online offer
Chapter 9   product - the online offerChapter 9   product - the online offer
Chapter 9 product - the online offer
 
Chapter 8 traffic building
Chapter 8   traffic buildingChapter 8   traffic building
Chapter 8 traffic building
 
Chapter 22 - Managing a Holistics Marketing Organizations
Chapter 22 - Managing a Holistics Marketing OrganizationsChapter 22 - Managing a Holistics Marketing Organizations
Chapter 22 - Managing a Holistics Marketing Organizations
 
Chapter 4 building inclusive e-markets
Chapter 4   building inclusive e-marketsChapter 4   building inclusive e-markets
Chapter 4 building inclusive e-markets
 
Designing and Managing Services
Designing and Managing ServicesDesigning and Managing Services
Designing and Managing Services
 
Google ad sense (Dec 2013)
Google ad sense (Dec 2013)Google ad sense (Dec 2013)
Google ad sense (Dec 2013)
 
Communications 2.0. Summer School 2010
Communications 2.0. Summer School 2010Communications 2.0. Summer School 2010
Communications 2.0. Summer School 2010
 
Chapter 6 e-marketing research
Chapter 6   e-marketing researchChapter 6   e-marketing research
Chapter 6 e-marketing research
 

Similar to Chapter 2 strategic e-marketing and performance metrics

E Marketing Ch2 Emktg Strat
E Marketing Ch2 Emktg StratE Marketing Ch2 Emktg Strat
E Marketing Ch2 Emktg Strat
Largest Catholic University
 
Stratergic marketing 2
Stratergic marketing 2Stratergic marketing 2
Stratergic marketing 2
SuhasDamul
 
Emodel
EmodelEmodel
Emodel
jim
 
Primo CRM
Primo CRMPrimo CRM
Steven geffen digital marketing strategy quirk textbook 5
Steven geffen digital marketing strategy quirk textbook 5Steven geffen digital marketing strategy quirk textbook 5
Steven geffen digital marketing strategy quirk textbook 5
Steven Geffen
 
Building a effective digital markting strategy
Building a effective digital markting strategyBuilding a effective digital markting strategy
Building a effective digital markting strategy
sandeep yadav
 
Moblizing Marketing Ops: Interactive Web 2.0 World
Moblizing Marketing Ops: Interactive Web 2.0 WorldMoblizing Marketing Ops: Interactive Web 2.0 World
Moblizing Marketing Ops: Interactive Web 2.0 World
ClearAction Continuum
 
Strategy - basic concepts
Strategy  - basic conceptsStrategy  - basic concepts
Strategy - basic concepts
Allied Consultants
 
Mkt574 v1 strategic marketing planmkt574 v1page 3 of 3ass
Mkt574 v1 strategic marketing planmkt574 v1page 3 of 3assMkt574 v1 strategic marketing planmkt574 v1page 3 of 3ass
Mkt574 v1 strategic marketing planmkt574 v1page 3 of 3ass
amit657720
 
Mythology Marketing System - The Full Story
Mythology Marketing System - The Full StoryMythology Marketing System - The Full Story
Mythology Marketing System - The Full Story
Mythology LLC
 
Digital Marketing Audit Template (2016)
Digital Marketing Audit Template (2016)Digital Marketing Audit Template (2016)
Digital Marketing Audit Template (2016)
Tim Bourgeois
 
Customer Relationship Management Club France
Customer Relationship Management   Club FranceCustomer Relationship Management   Club France
Customer Relationship Management Club France
Lootens
 
Chapter 2 developing marketing strategies and plans
Chapter 2   developing marketing strategies and plansChapter 2   developing marketing strategies and plans
Chapter 2 developing marketing strategies and plans
Aamir Khan
 
Automated marketing tools
Automated marketing toolsAutomated marketing tools
Automated marketing tools
Brad Tornberg
 
The Age Of New Reality Marketing V5.1 Final
The Age Of New Reality Marketing V5.1 FinalThe Age Of New Reality Marketing V5.1 Final
The Age Of New Reality Marketing V5.1 Final
Tony Mooney
 
Marketing Management Session 3 & 4
Marketing Management Session 3 & 4Marketing Management Session 3 & 4
Marketing Management Session 3 & 4
Harish Lunani
 
Information System Management
Information System ManagementInformation System Management
Information System Management
Mayank Kashyap
 
E Banking
E BankingE Banking
E Banking
jim
 
Structuring Your Marketing Team
Structuring Your Marketing TeamStructuring Your Marketing Team
Structuring Your Marketing Team
The Marketing Institute
 
Disruptive Go To Market Strategies (GTM)
Disruptive Go To Market Strategies (GTM)Disruptive Go To Market Strategies (GTM)
Disruptive Go To Market Strategies (GTM)
Sunder Madakshira
 

Similar to Chapter 2 strategic e-marketing and performance metrics (20)

E Marketing Ch2 Emktg Strat
E Marketing Ch2 Emktg StratE Marketing Ch2 Emktg Strat
E Marketing Ch2 Emktg Strat
 
Stratergic marketing 2
Stratergic marketing 2Stratergic marketing 2
Stratergic marketing 2
 
Emodel
EmodelEmodel
Emodel
 
Primo CRM
Primo CRMPrimo CRM
Primo CRM
 
Steven geffen digital marketing strategy quirk textbook 5
Steven geffen digital marketing strategy quirk textbook 5Steven geffen digital marketing strategy quirk textbook 5
Steven geffen digital marketing strategy quirk textbook 5
 
Building a effective digital markting strategy
Building a effective digital markting strategyBuilding a effective digital markting strategy
Building a effective digital markting strategy
 
Moblizing Marketing Ops: Interactive Web 2.0 World
Moblizing Marketing Ops: Interactive Web 2.0 WorldMoblizing Marketing Ops: Interactive Web 2.0 World
Moblizing Marketing Ops: Interactive Web 2.0 World
 
Strategy - basic concepts
Strategy  - basic conceptsStrategy  - basic concepts
Strategy - basic concepts
 
Mkt574 v1 strategic marketing planmkt574 v1page 3 of 3ass
Mkt574 v1 strategic marketing planmkt574 v1page 3 of 3assMkt574 v1 strategic marketing planmkt574 v1page 3 of 3ass
Mkt574 v1 strategic marketing planmkt574 v1page 3 of 3ass
 
Mythology Marketing System - The Full Story
Mythology Marketing System - The Full StoryMythology Marketing System - The Full Story
Mythology Marketing System - The Full Story
 
Digital Marketing Audit Template (2016)
Digital Marketing Audit Template (2016)Digital Marketing Audit Template (2016)
Digital Marketing Audit Template (2016)
 
Customer Relationship Management Club France
Customer Relationship Management   Club FranceCustomer Relationship Management   Club France
Customer Relationship Management Club France
 
Chapter 2 developing marketing strategies and plans
Chapter 2   developing marketing strategies and plansChapter 2   developing marketing strategies and plans
Chapter 2 developing marketing strategies and plans
 
Automated marketing tools
Automated marketing toolsAutomated marketing tools
Automated marketing tools
 
The Age Of New Reality Marketing V5.1 Final
The Age Of New Reality Marketing V5.1 FinalThe Age Of New Reality Marketing V5.1 Final
The Age Of New Reality Marketing V5.1 Final
 
Marketing Management Session 3 & 4
Marketing Management Session 3 & 4Marketing Management Session 3 & 4
Marketing Management Session 3 & 4
 
Information System Management
Information System ManagementInformation System Management
Information System Management
 
E Banking
E BankingE Banking
E Banking
 
Structuring Your Marketing Team
Structuring Your Marketing TeamStructuring Your Marketing Team
Structuring Your Marketing Team
 
Disruptive Go To Market Strategies (GTM)
Disruptive Go To Market Strategies (GTM)Disruptive Go To Market Strategies (GTM)
Disruptive Go To Market Strategies (GTM)
 

More from Dr. Ankit Kesharwani

Chapter 17 - Designing and Managing Integrated Marketing Communications
Chapter 17 - Designing and Managing Integrated Marketing CommunicationsChapter 17 - Designing and Managing Integrated Marketing Communications
Chapter 17 - Designing and Managing Integrated Marketing Communications
Dr. Ankit Kesharwani
 
Chapter 14 - Developing Pricing Strategies and Programs
Chapter 14 - Developing Pricing Strategies and ProgramsChapter 14 - Developing Pricing Strategies and Programs
Chapter 14 - Developing Pricing Strategies and Programs
Dr. Ankit Kesharwani
 
Chapter 4 - Marketing Research Process
Chapter 4 - Marketing Research ProcessChapter 4 - Marketing Research Process
Chapter 4 - Marketing Research Process
Dr. Ankit Kesharwani
 
Facebook insights (jan 2014)
Facebook insights (jan 2014)Facebook insights (jan 2014)
Facebook insights (jan 2014)
Dr. Ankit Kesharwani
 
Online referral marketing (Dec 2013)
Online referral  marketing (Dec 2013)Online referral  marketing (Dec 2013)
Online referral marketing (Dec 2013)
Dr. Ankit Kesharwani
 
Chapter 1 introduction and basic definitions
Chapter 1   introduction and basic definitionsChapter 1   introduction and basic definitions
Chapter 1 introduction and basic definitions
Dr. Ankit Kesharwani
 
Increasing Web traffic through Search Engine Marketing
Increasing Web traffic through Search Engine MarketingIncreasing Web traffic through Search Engine Marketing
Increasing Web traffic through Search Engine Marketing
Dr. Ankit Kesharwani
 
Chapter 12 e-marketing communication tools
Chapter 12   e-marketing communication toolsChapter 12   e-marketing communication tools
Chapter 12 e-marketing communication tools
Dr. Ankit Kesharwani
 

More from Dr. Ankit Kesharwani (8)

Chapter 17 - Designing and Managing Integrated Marketing Communications
Chapter 17 - Designing and Managing Integrated Marketing CommunicationsChapter 17 - Designing and Managing Integrated Marketing Communications
Chapter 17 - Designing and Managing Integrated Marketing Communications
 
Chapter 14 - Developing Pricing Strategies and Programs
Chapter 14 - Developing Pricing Strategies and ProgramsChapter 14 - Developing Pricing Strategies and Programs
Chapter 14 - Developing Pricing Strategies and Programs
 
Chapter 4 - Marketing Research Process
Chapter 4 - Marketing Research ProcessChapter 4 - Marketing Research Process
Chapter 4 - Marketing Research Process
 
Facebook insights (jan 2014)
Facebook insights (jan 2014)Facebook insights (jan 2014)
Facebook insights (jan 2014)
 
Online referral marketing (Dec 2013)
Online referral  marketing (Dec 2013)Online referral  marketing (Dec 2013)
Online referral marketing (Dec 2013)
 
Chapter 1 introduction and basic definitions
Chapter 1   introduction and basic definitionsChapter 1   introduction and basic definitions
Chapter 1 introduction and basic definitions
 
Increasing Web traffic through Search Engine Marketing
Increasing Web traffic through Search Engine MarketingIncreasing Web traffic through Search Engine Marketing
Increasing Web traffic through Search Engine Marketing
 
Chapter 12 e-marketing communication tools
Chapter 12   e-marketing communication toolsChapter 12   e-marketing communication tools
Chapter 12 e-marketing communication tools
 

Recently uploaded

Temple of Asclepius in Thrace. Excavation results
Temple of Asclepius in Thrace. Excavation resultsTemple of Asclepius in Thrace. Excavation results
Temple of Asclepius in Thrace. Excavation results
Krassimira Luka
 
HYPERTENSION - SLIDE SHARE PRESENTATION.
HYPERTENSION - SLIDE SHARE PRESENTATION.HYPERTENSION - SLIDE SHARE PRESENTATION.
HYPERTENSION - SLIDE SHARE PRESENTATION.
deepaannamalai16
 
Standardized tool for Intelligence test.
Standardized tool for Intelligence test.Standardized tool for Intelligence test.
Standardized tool for Intelligence test.
deepaannamalai16
 
A Free 200-Page eBook ~ Brain and Mind Exercise.pptx
A Free 200-Page eBook ~ Brain and Mind Exercise.pptxA Free 200-Page eBook ~ Brain and Mind Exercise.pptx
A Free 200-Page eBook ~ Brain and Mind Exercise.pptx
OH TEIK BIN
 
Simple-Present-Tense xxxxxxxxxxxxxxxxxxx
Simple-Present-Tense xxxxxxxxxxxxxxxxxxxSimple-Present-Tense xxxxxxxxxxxxxxxxxxx
Simple-Present-Tense xxxxxxxxxxxxxxxxxxx
RandolphRadicy
 
spot a liar (Haiqa 146).pptx Technical writhing and presentation skills
spot a liar (Haiqa 146).pptx Technical writhing and presentation skillsspot a liar (Haiqa 146).pptx Technical writhing and presentation skills
spot a liar (Haiqa 146).pptx Technical writhing and presentation skills
haiqairshad
 
Elevate Your Nonprofit's Online Presence_ A Guide to Effective SEO Strategies...
Elevate Your Nonprofit's Online Presence_ A Guide to Effective SEO Strategies...Elevate Your Nonprofit's Online Presence_ A Guide to Effective SEO Strategies...
Elevate Your Nonprofit's Online Presence_ A Guide to Effective SEO Strategies...
TechSoup
 
CHUYÊN ĐỀ ÔN TẬP VÀ PHÁT TRIỂN CÂU HỎI TRONG ĐỀ MINH HỌA THI TỐT NGHIỆP THPT ...
CHUYÊN ĐỀ ÔN TẬP VÀ PHÁT TRIỂN CÂU HỎI TRONG ĐỀ MINH HỌA THI TỐT NGHIỆP THPT ...CHUYÊN ĐỀ ÔN TẬP VÀ PHÁT TRIỂN CÂU HỎI TRONG ĐỀ MINH HỌA THI TỐT NGHIỆP THPT ...
CHUYÊN ĐỀ ÔN TẬP VÀ PHÁT TRIỂN CÂU HỎI TRONG ĐỀ MINH HỌA THI TỐT NGHIỆP THPT ...
Nguyen Thanh Tu Collection
 
CapTechTalks Webinar Slides June 2024 Donovan Wright.pptx
CapTechTalks Webinar Slides June 2024 Donovan Wright.pptxCapTechTalks Webinar Slides June 2024 Donovan Wright.pptx
CapTechTalks Webinar Slides June 2024 Donovan Wright.pptx
CapitolTechU
 
RESULTS OF THE EVALUATION QUESTIONNAIRE.pptx
RESULTS OF THE EVALUATION QUESTIONNAIRE.pptxRESULTS OF THE EVALUATION QUESTIONNAIRE.pptx
RESULTS OF THE EVALUATION QUESTIONNAIRE.pptx
zuzanka
 
Bonku-Babus-Friend by Sathyajith Ray (9)
Bonku-Babus-Friend by Sathyajith Ray  (9)Bonku-Babus-Friend by Sathyajith Ray  (9)
Bonku-Babus-Friend by Sathyajith Ray (9)
nitinpv4ai
 
220711130088 Sumi Basak Virtual University EPC 3.pptx
220711130088 Sumi Basak Virtual University EPC 3.pptx220711130088 Sumi Basak Virtual University EPC 3.pptx
220711130088 Sumi Basak Virtual University EPC 3.pptx
Kalna College
 
BPSC-105 important questions for june term end exam
BPSC-105 important questions for june term end examBPSC-105 important questions for june term end exam
BPSC-105 important questions for june term end exam
sonukumargpnirsadhan
 
A Visual Guide to 1 Samuel | A Tale of Two Hearts
A Visual Guide to 1 Samuel | A Tale of Two HeartsA Visual Guide to 1 Samuel | A Tale of Two Hearts
A Visual Guide to 1 Samuel | A Tale of Two Hearts
Steve Thomason
 
THE SACRIFICE HOW PRO-PALESTINE PROTESTS STUDENTS ARE SACRIFICING TO CHANGE T...
THE SACRIFICE HOW PRO-PALESTINE PROTESTS STUDENTS ARE SACRIFICING TO CHANGE T...THE SACRIFICE HOW PRO-PALESTINE PROTESTS STUDENTS ARE SACRIFICING TO CHANGE T...
THE SACRIFICE HOW PRO-PALESTINE PROTESTS STUDENTS ARE SACRIFICING TO CHANGE T...
indexPub
 
The basics of sentences session 7pptx.pptx
The basics of sentences session 7pptx.pptxThe basics of sentences session 7pptx.pptx
The basics of sentences session 7pptx.pptx
heathfieldcps1
 
Pharmaceutics Pharmaceuticals best of brub
Pharmaceutics Pharmaceuticals best of brubPharmaceutics Pharmaceuticals best of brub
Pharmaceutics Pharmaceuticals best of brub
danielkiash986
 
How to Setup Default Value for a Field in Odoo 17
How to Setup Default Value for a Field in Odoo 17How to Setup Default Value for a Field in Odoo 17
How to Setup Default Value for a Field in Odoo 17
Celine George
 
CIS 4200-02 Group 1 Final Project Report (1).pdf
CIS 4200-02 Group 1 Final Project Report (1).pdfCIS 4200-02 Group 1 Final Project Report (1).pdf
CIS 4200-02 Group 1 Final Project Report (1).pdf
blueshagoo1
 
How to Fix [Errno 98] address already in use
How to Fix [Errno 98] address already in useHow to Fix [Errno 98] address already in use
How to Fix [Errno 98] address already in use
Celine George
 

Recently uploaded (20)

Temple of Asclepius in Thrace. Excavation results
Temple of Asclepius in Thrace. Excavation resultsTemple of Asclepius in Thrace. Excavation results
Temple of Asclepius in Thrace. Excavation results
 
HYPERTENSION - SLIDE SHARE PRESENTATION.
HYPERTENSION - SLIDE SHARE PRESENTATION.HYPERTENSION - SLIDE SHARE PRESENTATION.
HYPERTENSION - SLIDE SHARE PRESENTATION.
 
Standardized tool for Intelligence test.
Standardized tool for Intelligence test.Standardized tool for Intelligence test.
Standardized tool for Intelligence test.
 
A Free 200-Page eBook ~ Brain and Mind Exercise.pptx
A Free 200-Page eBook ~ Brain and Mind Exercise.pptxA Free 200-Page eBook ~ Brain and Mind Exercise.pptx
A Free 200-Page eBook ~ Brain and Mind Exercise.pptx
 
Simple-Present-Tense xxxxxxxxxxxxxxxxxxx
Simple-Present-Tense xxxxxxxxxxxxxxxxxxxSimple-Present-Tense xxxxxxxxxxxxxxxxxxx
Simple-Present-Tense xxxxxxxxxxxxxxxxxxx
 
spot a liar (Haiqa 146).pptx Technical writhing and presentation skills
spot a liar (Haiqa 146).pptx Technical writhing and presentation skillsspot a liar (Haiqa 146).pptx Technical writhing and presentation skills
spot a liar (Haiqa 146).pptx Technical writhing and presentation skills
 
Elevate Your Nonprofit's Online Presence_ A Guide to Effective SEO Strategies...
Elevate Your Nonprofit's Online Presence_ A Guide to Effective SEO Strategies...Elevate Your Nonprofit's Online Presence_ A Guide to Effective SEO Strategies...
Elevate Your Nonprofit's Online Presence_ A Guide to Effective SEO Strategies...
 
CHUYÊN ĐỀ ÔN TẬP VÀ PHÁT TRIỂN CÂU HỎI TRONG ĐỀ MINH HỌA THI TỐT NGHIỆP THPT ...
CHUYÊN ĐỀ ÔN TẬP VÀ PHÁT TRIỂN CÂU HỎI TRONG ĐỀ MINH HỌA THI TỐT NGHIỆP THPT ...CHUYÊN ĐỀ ÔN TẬP VÀ PHÁT TRIỂN CÂU HỎI TRONG ĐỀ MINH HỌA THI TỐT NGHIỆP THPT ...
CHUYÊN ĐỀ ÔN TẬP VÀ PHÁT TRIỂN CÂU HỎI TRONG ĐỀ MINH HỌA THI TỐT NGHIỆP THPT ...
 
CapTechTalks Webinar Slides June 2024 Donovan Wright.pptx
CapTechTalks Webinar Slides June 2024 Donovan Wright.pptxCapTechTalks Webinar Slides June 2024 Donovan Wright.pptx
CapTechTalks Webinar Slides June 2024 Donovan Wright.pptx
 
RESULTS OF THE EVALUATION QUESTIONNAIRE.pptx
RESULTS OF THE EVALUATION QUESTIONNAIRE.pptxRESULTS OF THE EVALUATION QUESTIONNAIRE.pptx
RESULTS OF THE EVALUATION QUESTIONNAIRE.pptx
 
Bonku-Babus-Friend by Sathyajith Ray (9)
Bonku-Babus-Friend by Sathyajith Ray  (9)Bonku-Babus-Friend by Sathyajith Ray  (9)
Bonku-Babus-Friend by Sathyajith Ray (9)
 
220711130088 Sumi Basak Virtual University EPC 3.pptx
220711130088 Sumi Basak Virtual University EPC 3.pptx220711130088 Sumi Basak Virtual University EPC 3.pptx
220711130088 Sumi Basak Virtual University EPC 3.pptx
 
BPSC-105 important questions for june term end exam
BPSC-105 important questions for june term end examBPSC-105 important questions for june term end exam
BPSC-105 important questions for june term end exam
 
A Visual Guide to 1 Samuel | A Tale of Two Hearts
A Visual Guide to 1 Samuel | A Tale of Two HeartsA Visual Guide to 1 Samuel | A Tale of Two Hearts
A Visual Guide to 1 Samuel | A Tale of Two Hearts
 
THE SACRIFICE HOW PRO-PALESTINE PROTESTS STUDENTS ARE SACRIFICING TO CHANGE T...
THE SACRIFICE HOW PRO-PALESTINE PROTESTS STUDENTS ARE SACRIFICING TO CHANGE T...THE SACRIFICE HOW PRO-PALESTINE PROTESTS STUDENTS ARE SACRIFICING TO CHANGE T...
THE SACRIFICE HOW PRO-PALESTINE PROTESTS STUDENTS ARE SACRIFICING TO CHANGE T...
 
The basics of sentences session 7pptx.pptx
The basics of sentences session 7pptx.pptxThe basics of sentences session 7pptx.pptx
The basics of sentences session 7pptx.pptx
 
Pharmaceutics Pharmaceuticals best of brub
Pharmaceutics Pharmaceuticals best of brubPharmaceutics Pharmaceuticals best of brub
Pharmaceutics Pharmaceuticals best of brub
 
How to Setup Default Value for a Field in Odoo 17
How to Setup Default Value for a Field in Odoo 17How to Setup Default Value for a Field in Odoo 17
How to Setup Default Value for a Field in Odoo 17
 
CIS 4200-02 Group 1 Final Project Report (1).pdf
CIS 4200-02 Group 1 Final Project Report (1).pdfCIS 4200-02 Group 1 Final Project Report (1).pdf
CIS 4200-02 Group 1 Final Project Report (1).pdf
 
How to Fix [Errno 98] address already in use
How to Fix [Errno 98] address already in useHow to Fix [Errno 98] address already in use
How to Fix [Errno 98] address already in use
 

Chapter 2 strategic e-marketing and performance metrics

  • 1. E-MARKETING, 6TH EDITION JUDY STRAUSS AND RAYMOND FROST Chapter 2: Strategic E-Marketing and Performance Metrics
  • 2. Strategic Planning  Strategic planning is the “managerial process of developing and maintaining a viable fit between the organization’s objectives, skills, and resources and its changing market opportunities.” (Kotler and Keller, 2008)  Two key elements of strategic planning are: - The preparation of a SWOT analysis, - The establishment of strategic objectives.
  • 3. SWOT Analysis Strengths, Weaknesses, Opportunities, and Threats  It examines: - The company’s internal strengths and weaknesses with respect to the environment, - The competition looks at external opportunities and threats.  Opportunities may help to define a target market or identify new product opportunities, while threats are areas of exposure.
  • 4. Example: The Amazon story Strength A smart and talented team that stayed focused and learned what it didn’t know. Weakness No experience in: -Selling books -Processing credit card transactions -Boxing books for shipment Opportunity To sell online. Threat A full-scale push by one of the large bookstore chains to claim the online market.
  • 5.  A company’s strengths and weaknesses in the online world may be somewhat different from its strengths and weaknesses in the brick-and-mortar world.  Barnes & Noble has enormous strengths in the brick-and- mortar world but these do not necessarily translate into strengths in the online world:  Channel conflict = having to explain to channel partners why customers can purchase for less online than in the store.
  • 6. Internal Capability Examples Customer interactions E-commerce, customer service, distribution channels Production and fulfillment SCM, production scheduling, inventory management People Culture, skills, knowledge management, leadership and commitment to e-business Technology ERP systems, legacy applications, networks, Web site, security, IT skills Core infrastructure Financial systems, R&D, HR Key Internal Capabilities for E-Business Source: Adapted from Kalakota and Robinson (1999)
  • 7. Strategic Objectives  Growth. How much can the firm reasonably expect to grow in terms of revenues, and how fast?  Competitive position. How should the firm position itself against other firms in the industry? Viable positions are: - Industry leader (Google, Microsoft), - Price leader (Priceline.com), - Quality leader (Mercedes), - Niche firm (eMarketer), - Best customer service (Dell, Amazon).  Geographic scope. Where should the firm serve its customers on the continuum of local to multinational?  Other objectives. Companies often set objectives for the number of industries they will enter, the range of products they will offer, the core competencies they will foster, and so on. Point of Parity  Point of difference
  • 8. Environment, Strategy, and Performance Exhibit 2 - 1 Focusing on Strategy and Performance
  • 9. Strategy  It is the means to achieve a goal.  It is concerned with how the firm will achieve its objectives, not what its goals are: 1. The firm sets its growth and other objectives, 2. It decides which strategies it will use to accomplish them, 3. The tactics are detailed plans to implement the strategies.  It is important to note that objectives (what), strategies (How), and tactics (detailed outline) can exist at many different levels in a firm.
  • 10. From Strategy to Electronic Strategy  The deployment of enterprise resources to capitalize on technologies for reaching specified objectives that ultimately improve performance and create sustainable competitive advantage.  E-business strategy  Corporate / enterprise Strategy + Information Technology  E-marketing strategy  Marketing strategy + Information technology
  • 11. From Strategy to Electronic Strategy • Most strategic plans explain the rationale for the chosen objectives and strategies. There are four appropriate types of rationale:  Strategic justification shows how the strategy fits with the firm’s overall mission and business objectives,  Operational justification identifies and quantifies the specific process improvements that will result from the strategy,  Technical justification shows how the technology will fit and provide synergy with current information technology capabilities,  Financial justification examines cost/benefit analysis and uses standard measures (ROI, NPV).
  • 12. From Business Models to E-Business Models  Business model: a method by which the organization sustains itself in the long term, and includes its value proposition for partners and customers as well as its revenue streams.  A firm will select one or more business models as strategies to accomplish enterprise goals.  Critical components:  Customer value. Does the model create value through its product offerings that is differentiated in some way from that of competitors?  Scope. Which markets do the firm serve, and are they growing? Are these markets currently served by the firm, or will they be higher risk new markets?  Price. Are the firm’s products priced to appeal to markets and also achieve company share and profit objectives?
  • 13. How does a firm select the best business models?  Critical components (continued………….)  Revenue sources. Where is the money coming from? Is it plentiful enough to sustain growth and profit objectives over time?  Connected activities. What activities will the firm need to perform to create the value described in the model? Does the firm have these capabilities?  Implementation. The company must have the ability to actually make it happen.  Capabilities. Does the firm have the resources (financial, core competencies, and so on) to make the selected models work?  Sustainability. The e-business model is particularly appropriate if it will create a competitive advantage over time.
  • 14. E-Business Models  The direct connection with information technology makes a business model an e-business model:  E-Business Model = Business Model + Information Technology  Values and Revenue  Whether online or offline, the value proposition involves knowing what is important to the customer or partner and delivering it better than other firms.  How e-marketing contributes to the e-business model?
  • 15. E-Marketing Contributes to the E-Business Model E-Marketing Increases Benefits Online mass customization Personalization 24/7 convenience Self-service ordering and tracking One-stop shopping Learning, engaging, and communicating with customers on social networking sites E-Marketing Decreases Costs Low cost distribution of communication messages Low cost distribution channel for digital products Lowers costs for transaction processing Lowers costs for knowledge acquisition Creates efficiencies in supply chain Decreases the cost of customer service E-Marketing Increases Revenues Online transaction revenues such as product, information, advertising, and subscriptions sales; or commission/fee on a transaction or referral Add value to products/services and increase prices Increase customer base by reaching new markets Build customer relationships and thus increase current customer spending (Share of wallet)
  • 16. Menu of Strategic E-Business Models  A key element in setting strategic objectives is to take stock of the company's current situation and decide the level of commitment to e- business in general and e-marketing in particular.  Questions prior to embarking on any e-business strategies:  Are the business models likely to change in my industry?  What does the answer to question I mean to my company?  When do I need to be ready?  How do I get there from here?
  • 17. Pure Play Enterprise Business Process Activity Pure dot-com (Amazon) Click and Mortar (eSchwab, most retailers) Customer Relationship Management Brochureware E-mail Levelofbusinessimpact Business transformation (competitive advantage, industry redefinition) Effectiveness (customer retention) Efficiency (cost reduction) Exhibit 2 - 1 Level of Commitment to E-business Source: Adapted from www.mohansawhney.com
  • 18. Activity Level E-Business Models  Online purchasing.  Firms can use the Web to place orders with suppliers, thus automating the activity.  Order processing.  This occurs when online retailers automate Internet transactions created by customers.  E-mail.  When organizations send e-mail communications to stakeholders, they save printing and mailing costs.  Content publisher.  Companies create valuable content or services on their Web sites, draw lots of traffic, and sell advertising. Another type of content publishing, the firm posts information about its offerings on a Web site, thus saving printing costs = brochureware.
  • 19. Activity Level E-Business Models  Business intelligence (BI).  This refers to the gathering of secondary and primary information about competitors, markets, customers, and more.  Online advertising.  As an activity, the firm buys advertising on someone else’s e-mail or Web site.  Online sales promotions.  Companies use the Internet to send samples of digital products (e.g., music or software), or electronic coupons, among other tactics.  Pricing strategies.  With dynamic pricing, a firm presents different prices to various groups of customers, even at the individual level.
  • 20. Business Process Level E-Business Models  Customer relationship management (CRM) = retaining + growing business / individual customers through strategies that ensure their satisfaction with the firm and its products = keep customers for the long term + increase the number and frequency of their transactions.  Knowledge management (KM) = combination of a firm’s database contents + the technology used to create the system + the transformation of data into useful information and knowledge.  Supply chain management (SCM) = coordination of the distribution channel to deliver products more effectively and efficiently to customers.  With community building, firms build Web sites to draw groups of special- interest users. Firms invite users to chat / post e-mail on their Web sites to attract potential customers to the site.
  • 21. Business Process Level E-Business Models  Affiliate programs  when firms put a link to someone else’s retail Web site and earn a commission on all purchases by referred customers.  Database marketing  collecting, analyzing, and disseminating electronic information about customers, prospects, and products to increase profits.  Enterprise resource planning (ERP)  a back-office system for order entry, purchasing, invoicing, and inventory control.  Mass customization  Internet’s unique ability to customize marketing mixes electronically and automatically to the individual level.
  • 22. Enterprise Level E-Business Models  E-commerce refers to online transactions: selling goods and services on the Internet, either in one transaction or over time with an ongoing subscription.  Direct selling refers to a type of e-commerce in which manufacturers sell directly to consumers, eliminating intermediaries such as retailers.  Content sponsorship online is a form of e-commerce in which companies sell advertising either on their Web sites or in their e-mail.  A portal is point of entry to the Internet, such as the Yahoo! and AOL Web sites. They are portals because they provide many services in addition to search capabilities.  Online brokers are intermediaries that assist in the purchase negotiations without actually representing either buyers or sellers. The revenue stream in these models is commission or fee-based:  The brokerage model are E*Trade (online exchange), and eBay (online auction),  Broker Vs. Agent
  • 23. Enterprise Level E-Business Models  Online agents represent either the buyer or the seller and earn a commission for their work.  Selling agents help a seller move product.  Manufacturer’s agents represent manufacturing firms that sell complementary products to avoid conflicts of interest.  Purchasing agents represent buyers.  An online purchasing agent is called a buyer cooperative or a buyer aggregator.  Shopping agents help individual consumers find specific products and the best prices online (e.g., www.mysimon.com).  The reverse auction, allows individual buyers to enter the price they will pay for particular items at the purchasing agent’s Web site, and sellers can agree or not.  A virtual mall is similar to a shopping mall in which multiple online merchants are hosted at a Web site.
  • 24. Pure Play  Pure plays = businesses that began on the Internet, even if they subsequently added a brick-and-mortar presence.  E.g. E*Trade is a pure play, beginning with only online trading  Pure plays face significant challenges: They must compete as new brands and take customers away from established brick-and-mortar businesses.  One way to change the rules is to invent a new e-business model, as Yahoo! and eBay did.
  • 25. An Optimized System of E-Business Models  E-business is the continuous optimization of a firm’s business activities through digital technology.  Firms usually combine traditional business and e-business models. E.g. Schwab = combined its online and offline brokerages in a unified system.  The challenge: customers expect a high degree of coordination between online and offline operations.  The danger: the established corporate culture might squash e- commerce initiatives or slow them down with the best of intentions.  The solution: Many businesses have spun off their e-commerce operations as wholly owned subsidiaries or pure plays so they can compete without the weight of the parent business.
  • 26. An Optimized System of E-Business Models  A fully optimized e-business that uses the Internet to sell is the sum of multiple e-business activities and processes: E-commerce, business intelligence, customer relationship management, supply chain management, and enterprise resource planning as represented in the following equation: EB = EC + BI + CRM + SCM + ERP
  • 27. Performance Metrics  The only way to know whether a company has reached its objectives is to measure results.  Specific measures designed to evaluate the effectiveness and efficiency of an organization’s operations.  Armed with this information, the company can make corrections to be sure it accomplishes the goal.  Performance metrics should be defined along with the strategy formulation so the entire organization will know what results constitute successful.  Steps in measuring strategy effectiveness:  Translate the vision, strategy, or e-business model into components that have measurable outcomes that various departments can use to create action plans,  Communicate to employees what results the firm values.  When employee evaluations are tied to the metrics, people will be motivated to make decisions that lead to the desired outcomes.  Web Analytics
  • 28. The Balanced Scorecard  BEFORE, to measure success, firms used:  Financial performance, Market share, The bottom line (profits).  BUT these approaches are narrowly focused and place more weight on short-term results rather than addressing the firm's long-term sustainability.  NOW, they use: The Balanced Scorecard  The scorecard approach links strategy to measurement by asking firms to consider their vision, critical success factors for accomplishing it, and subsequent performance metrics in four areas: Customer, internal, innovation and learning, and financial.
  • 29. Customer Perspective Internal Business Perspective Innovation and Learning Perspective Financial Perspective Goals Measures Goals Measures Goals Measures Goals Measures Exhibit 2 - 1 The Balanced Scorecard Has Four Perspectives
  • 30. Four Perspectives  The customer perspective  Uses measures of the value delivered to customers.  These metrics tend to fall into four areas: time, quality, performance and service, and cost.  The internal perspective  Evaluates company success at meeting customer expectations through its internal processes.  The learning and growth perspective  Companies place value on continuous improvement to existing products and services as well as on innovation in new products.  The financial perspective  Income and expense metrics as well as return on investment, sales, and market share growth.
  • 31. Scorecard Benefits  Obtain timely information to update its strategy.  Balance long-term and short-term measures and evaluate every part of the firm and how each contributes toward accomplishing selected goals.  It helps firms leverage their relationships with partners and supply chain members.  Go beyond financial metrics in measuring many different aspects that lead to effective and efficient performance.  Creates a long-term perspective for company sustainability.  Forces companies to decide what is important and translate those decisions into measurable outcomes that all employees can understand.  A great communication tool because employees can use the scorecard as a guide to coordinate their efforts.  Support employee evaluation in that individual performance can be tied to successful outcomes on the metrics.  A way to measure intangible as well as tangible assets.  The are flexible and allow firms to select appropriate metrics for their goals, strategies, industry, and specific vision.