CHAPTER 3: THE E-MARKETING PLAN (copy)

The e-marketing plan is

a blueprint for e-marketing strategy formulation and implementation.

The plan serves as a road map to guide the firm, allocate resources, and make decisions.

Napkin plan

Entrepreneurs jot down ideas on a napkin.

Large companies create a just-do-it, activity-based, bottom-up plan.

The Venture Capital E-Marketing Plan

A more comprehensive plan for entrepreneurs seeking start-up capital

SOURCES OF FUNDING

• Bank loans

• Private funds

• Angel investors

• Venture capitalists (VCs)

E-MARKETING PLAN

7 steps

1. Situation analysis

2. E-Marketing strategic planning

3. Objectives

4. E-Marketing strategy

5. Implementation plan

6. Budget

7. Evaluation plan

E-MARKETING PLAN

STEP 1: SITUATION ANALYSIS

• Review the firm’s environmental and SWOT analyses.

• Review the existing marketing plan and any other information that can be obtained about the company and its brands.

• Review the firm’s e-business objectives, strategies, and performance metrics.

E-MARKETING PLAN

STEP 2: E-MARKETING STRATEGIC PLANNING

Determine the fit between the organization and its changing market opportunities.

Perform marketing opportunity analysis, demand and supply analyses, and segment analysis.

Tier 1 Strategies

• Segmentation

• Targeting

• Differentiation

• Positioning

Tier 1 Strategies include

• Segmentation: by conducting Market Opportunity Analysis (MOA), including demand & supply analysis

• Targeting: by conducting Market Opportunity Analysis (MOA), including demand & supply analysis

• Differentiation

• Positioning

E-MARKETING PLAN

STEP 3: OBJECTIVES

include the following aspects:

• Task (what is to be accomplished)

• Measurable quantity (how much)

• Time frame (by when)

Most e-marketing plans aim to accomplish the following objectives:

• Increase market share

• Increase the number of comments on a blog

• Increase sales revenue

• Reduce costs

• Achieve branding goals

• Increase database size

• Achieve customer relationship management goals

• Improve supply chain management

E-MARKETING PLAN

STEP 4: E-MARKETING STRATEGIES

Identify revenue streams, suggested by e-business models

Tier 2 Strategies

• Design the offer, value, distribution, communication, and market/partner relationship management strategies.

• Modify objectives in step 3 as warranted

Tier 2 Strategies Include

strategies related to the 4 P’s and relationship management to achieve plan objectives.

• Product strategies

• Pricing strategies: Dynamic pricing, Online bidding

• Place: Distribution strategies: Direct marketing, Agent e-business models

• Promotion: Marketing communication strategies

• Relationship management strategies: Some firms use CRM (customer relationship management) or PRM (partner relationship management) software to integrate customer communication and purchase behavior

Dynamic pricing

This strategy applies different price levels for different customers or situations.

For example, a first-time buyer or someone who hasn't purchased for many months may receive lower prices than a heavy user, or prices may drop during low demand periods.

Online bidding

This approach presents a way to optimize inventory management.

For instance, a few Seattle hotels allow guests to bid for hotel rooms on slow days, instructing its reservation agents to accept various minimum bid levels depending on occupancy rates for any given day.

E-MARKETING PLAN

STEP 5: IMPLEMENTATION PLAN

Tactics are used to achieve plan objectives:

• Marketing mix (4 Ps) tactics

• Relationship management tactic

• Marketing organization tactics: Staff, Department structure

• Information-gathering tactics: Web site log analysis, Business intelligence and secondary research

E-MARKETING PLAN

STEP 6: BUDGET

The plan must identify the expected returns from marketing investments, including:

• Cost/benefit analysis

• ROI calculation

• Internal rate of return (IRR) calculation

• Return on marketing investment (ROMI)

E-Marketing costs

• Technology

• Site design

• Salaries

• Other site development expenses: - such as registering multiple domain names and hiring consultants to write content ; perform other development and design activities.

• Marketing communication

• Miscellaneous: Other typical project costs might fall here —expenses such as travel, telephone, stationery printing to add the new URL…

E-MARKETING PLAN

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.

• E-marketers must show how intangible goals will lead to higher revenue.

• Accurate and timely metrics can help justify expenditures.

In general, today’s firms are

ROI driven

E-marketers must show how … goals will lead to higher revenue.

intangible

The demand analysis portion includes

market segmentation analyses

to describe and evaluate the potential profitability, sustainability, accessibility, and size of various potential segments.

The purpose of a supply analysis is to

assist in forecasting segment profitability as well as to find competitive advantages to exploit in the online market.