E Marketing

Module 2
 Topics
• E- marketing plan
• Environmental scan
• Market opportunity analysis
• Design marketing mix
• Database marketing
 E Marketing Plan
• It is a blueprint for E Marketing strategy
formulation and implementation.
• Guiding, dynamic document that links the
firm’s E Business strategy (E Business
Models) with technology driven marketing
strategies and lays out details for plan
implementation through marketing
management.
 E Marketing Plan
• Often combined with the firm’s overall
marketing plan.
 Types of E Marketing Plans
• Napkin Plan (Bottom Up Approach)
• Venture Capital E Marketing Plan
 Napkin Plan
• The idea that many dot.com entrepreneurs
were known to simply jot their ideas on a
napkin over lunch or cocktails and then
run off to find financing. This is also known
as the just-do-it, activity-based, bottom-up
plan.
 Venture Capital E Marketing Plan
• Dot.com’s can be financed privately
through angel investors or family/friends,
or through venture capitalists. Venture
capitalists invest in good ideas with
competent people running the business
and generally look for an exit plan to get
their money and profits out of the venture
within a few years.
 Seven Step E Marketing Plan
1. Situation Analysis
2. E-Marketing Strategic Planning
3. Objectives
4. E-Marketing Strategy
5. Implementation Plan
6. Budget
7. Evaluation Plan
 1) Situation Analysis
• SWOT Analysis
Internal Strengths and Weaknesses
External Opportunities and Threats
• 3 Key Environmental Factors
 Legal
 Technological
 Market-related factors
 2) E-Marketing Strategic Planning
• Involves determining the fit between the
organization’s objectives, skills, and
resources and its changing market
opportunities (Tier 1 Tasks).
• Includes
Segmentation
Targeting
Differentiation
Positioning.
 3) Objectives
• Task specific (what is to be accomplished)
• Measurable (how much)
• Time specific (by when)
• Realistically attainable
 Types of Objectives
• Increase Market Share.
• Increase Number of Comments/Likes on a Blog/
Post.
• Increase Sales Revenue.
• Reduce Costs.
• Achieve Branding Goals.
• Increase Database Size.
• Achieve CRM goals.
• Improve SCM.
 4) E-Marketing Strategies
• Involve the 4 P’s and Customer
Relationship Management to achieve plan
objectives.
offer (product)
value (pricing)
distribution (place)
communication (promotion)
• These are called Tier 2 Tasks.
 4) E Marketing Strategies
• Offer (Product)
A firm can sell merchandise, services, or
advertising on its Web site. They can
create new brands for the online market or
sell selected current or enhanced products
in that channel.
 4) E Marketing Strategies
• Value (Pricing)
A firm must decide on how online product
prices will compare with offline equivalents
and usually use either dynamic pricing r
online bidding.
Dynamic Pricing
Online Bidding
 4) E Marketing Strategies
• Distribution (Place)
Many firms use the Internet to create
efficiencies among supply chain members
through
 Direct marketing
 Agent e-business models.
 4) E Marketing Strategies
• Communication (Promotion)
Firms use Web pages and e-mail to
communicate with their target markets and
business partners.
Firms build brand images, create
awareness of new products, and position
products using the Web and e-mail
 4) E Marketing Strategies
• CRM Strategies
E-marketing communication strategies
also help build relationships with a firm’s
partners, supply chain members, or
customers.
 5) Implementation Plan
• Marketer selects the marketing mix – the 4
P’s, relationship management tactics, and
other tactics to achieve the plan
objectives.
• Devises detailed plans for implementation.
• Importance is placed on information
gathering tactics, web site log analysis,
and business intelligence.
 6) Budget
• Determine the returns from an investment:
 Cost/benefit analysis
 Return on investment (ROI)
 Internal rate of return (IRR)
 Return on marketing investment
(ROMI)
 6) Budget
• Revenue
The firm uses an established sales
forecasting method for estimating the site
revenues in the short, intermediate, and
long term.
 6) Budget
• Intangible Benefits:
Includes brand equity, brand awareness
and similar objectives that may be difficult
to measure.
 6) Budget
• Cost Savings:
Creates efficiencies in the supply chain
which typically increases profits by
eliminating intermediaries.
 6) Budget
• E-Marketing Costs :
Include costs for: employees, hardware,
software, programming, and more.
Costs for the Web site may include:
Technology costs
Site design
Salaries
Marketing communications and others.
 7) Evaluation Plan
• The E Marketing plan’s success depends
on continuous evaluation which means
marketers must have a tracking system in
place before the electronic doors open.
 E Marketing Environment
• 1. Micro Environment Factors
• 2. Macro Environment Factors
 E Marketing Environment
Micro Environmental Factors
• Suppliers
• Distributors
• Stakeholders
• Competitors
 E Marketing Environment
Macro Environmental Factors
• Societal
• Technological
• Economical
• Political
 E Marketing Opportunity
Analysis
• A tool to identify and assess the
attractiveness of business opportunity.
 E Marketing Opportunity
Analysis
• An e-marketing plan guides the marketer through the process of
identifying and analyzing potential markets.

• Global e-marketers must balance 2 different analytical approaches:

– Market similarity : If they are operating from a country with an

emerging economy and want to target markets in developed
countries,

– Market differences :
If they are based in an emerging economy and want to market to
their home target market,
If they are from a developed economy and want to target groups in
an emerging economy.
 Need for E Marketing
Opportunity Analysis
• Competition across (vs within) industry
boundary
• Competition between co-opetitors (vs
competitors)
• Competition on speed of response
• New ways to bring value to customers
• New ways to reconfigure value chains &
value systems
 Need for E Marketing
Opportunity Analysis
A value chain: a set of value creating
activities within a firm
A value system: a set of value creating
activities connecting a firm with other firms
and customers
 Need for E Marketing
Opportunity Analysis
Considerations for value creation:
Trapped value: efficiency, accessibility,
customer empowerment
New value: personalization, extension,
community-building, collaboration
Horizontal plays: improve functional
operations
Vertical plays: improve industry specific
business activities
 Market Opportunity Analysis
How? Using a market opportunity analysis framework that revolves
around four key elements:
 Analysis of the customer environment uncovers unmet or
Customer underserved customer needs, as well as the market they occupy

 Analysis of the technology environment reveals the readiness of

Technology the particular technology, as well as any alternative technologies,
on which the manager anticipates deploying the firm’s offering

 Analysis of the company environment provides the current state of

Company the company’s resources

 Analysis of the competition environment reveal the structure of the

Competition industry and market, key competitors in the marketplace, and the
firm’s relative advantage to each of the key players
 Market opportunity analysis
Identify
Identify the
the Unmet
Unmet and/
and/ or
or Underserved
Underserved Customer
Customer Need
Need

Customer

Identify
Identify the
the Specific
Specific Customers
Customers aa Company
Company Will
Will Pursue
Pursue

Competition Assess
Assess Advantage
Advantage Relative
Relative to
to Competition
Competition

Company Assess
Assess the
the Company’s
Company’s Resources
Resources to
to Deliver
Deliver the
the Offering
Offering

Technology Assess
Assess Market
Market Readiness
Readiness of
of Technology
Technology

Specify
Specify Opportunity
Opportunity in
in Concrete
Concrete Terms
Terms

Assess
Assess Opportunity
Opportunity Attractiveness
Attractiveness
Emerging economy Emerging economy
Understand market differences

Understand
Understand
market similarities
market differences

Developed economy
 E Marketing Mix
• Personalization
• Privacy
• Customer Service
• Community
• Site
• Security
• Sales Promotion
 Personalisation
• The need to recognise and identify a certain customer in
order to establish relations

• To gather all possible information in order to develop

customized, personalized products and services.

• Can be applied to any component of the Marketing mix

• Example: Use of ‘cookies’ to gain personalised

information of computer / web use.
 Privacy
• Connected to ‘Privatisation’

• How will personal information be used and

protected?

• Requires an agreed policy on access

procedures and collecting information

• Must take into account existing regulations and

legal aspects regarding collection and usage of
personal information.
 Customer Service
• A required support function in transactional
situations.

• Should be treated as along term, on-going

process.

• An essential pat of the eMarketing Mix

• Service & Support acts upon all elements of 4Ps

 Community
• Generated by the nature of the internet
• A group of entities that interact for a common purpose is
a "community“
• The value of a network equals the square of the number
of components.
• So: the value of a community rises with the number of its
members.
• Customers / clients of a business can be seen as part of
a community
• Encouraging interaction and community should be
undertaken by the business
• Interactions among customer community impacts on all
other functions of eMarketing.
 Site Design
• The location where eMarketing interactions take place

• Available at any moment and from any place – a digital

location for digital interactions.

• ‘Site’ may be more than conventional website e.g. Palm

Pilot or iPhone.

• This special location, accessible through all sort of digital

technologies is mediates all other functions of e-
Marketing
 Site Design
• Home Page
• Navigation and Search
• Page Design and Layout
• Site Tools
 Security
• Essential function of e-Marketing once transactions
began to be performed through internet channels

• Needs to include:
– security during transactions performed on the website (not
allowing third parties access to the transaction)
– security of data collected and stored, about our customers and
visitors.

• Security safeguards should be communicated to

customers
 Sales Promotion
• Widely used in traditional Marketing

• Strategy for immediate sales goals in terms of

volume.

• eMarketer’s task is to find new possibilities and

new approaches for developing an efficient
promotion plan.

• Marketer needs to keep up with the latest

internet technologies and applications
 Product
• The Assortment
• Merchandizing and Recommendations
 Product- Product Assortment
• Refers to the arrangement/ showcase of
products in the online format.
 Product - Product
Merchandizing
• Merchandising practices can be enhanced
by the use of multi-media audio and visual
aids.
 Product - Recommendations
• The context and the accessories that are
highlighted in the merchandising can form
the basis for recommendations.
• The recommendations can be made
accessible to the consumer using buttons
for recommendations, callouts,
accessories or suggested use.
 Price
• Price sensitivity is higher in online
environments.
• Dynamic Pricing
• Forward Auctions
• Reverse Auctions
• Name your Price Model
 Promotion
• Banners
• Sponsored Links
• Outbound Email
• Viral Marketing
• E Coupons
Banners
Sponsored Links
E Mail Marketing
 Place
• Remote Hosting
• Affiliates
Remote Hosting
Affiliates
 Database Marketing
• An information driven marketing process
made possible by database technology that
enables marketers to develop, test, implement,
measure and modify customized marketing
programs and strategies.
 Database Marketing
• An approach by which computer database
technologies are harnessed to design,
create, and manage customer data lists
containing information about each
customer's characteristics and history of
interactions with the company. The lists
are used as needed for locating, selecting,
targeting, servicing, and establishing
relationships with customers in order to
enhance the long-term value of these
customers to the company. - AMA
 Premise of Database
Marketing
• Not all customers are alike
• Gathering, maintaining, and analyzing
customer and prospect info allows
marketers to
- identify key market segments.
- optimize planning, pricing and
promoting
- close deals satisfying both buyers and
sellers
Database Marketing Requirements
• Relevant data about customers and prospect.
• Database technology to transform raw data into
powerful and accessible market information.
• Statistical techniques to rank customers in terms
of their likeliness to:
- respond to market communication
- buy products
- return products
- pay for products
- stay or leave
Database Marketing Requirements

• Knowledge of economics of gathering,

manipulating, and analyzing data
• Creativity to capitalize on mkt
opportunities that emerge from above
process to develop
- individual customer relationships
- build business
 Benefits
• Info about customer purchases is as important as
dollars obtained from selling goods
• Develop ongoing dialogues with customers
through:
- In-package surveys
- Opinion polls
- Tracking studies
- Point of Sale (POS) programs
• These dialogues should reward customers for
- Repurchasing
- Referring new customers
 Benefits to Customers
• Enables customers to
- register their preferences
- form perceptions about company’s
brands (both old and new)
- leverage more value for what they pay