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E-MARKETING 5/E
JUDY STRAUSS AND RAYMOND FROST
Chapter 3: The E-Marketing Plan
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Chapter 3 Objectives
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After reading Chapter 3, you will be able to:
Discuss the nature and importance of an e-marketing plan
and outline its 7 steps.
Show the form of an e-marketing objective and highlight
the use of an objective-strategy matrix.
Describe the tasks that marketers complete as they create
e-marketing strategies.
List some key revenues and costs identified during the
budgeting step of the planning process.
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The Twitter Story
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How did a new concept go from an idea in brain storm
meeting in 2006 to the second most popular social network
six years later?
Jack Dorsey recalls how they spend time trying to find the
best name for his brainchild…
He wanted to capture that feeling: the physical sensation that you
are buzzing you friends pocket. Buzzing all over the world
..”twitch….twitter”:
Twitter traffic took off in a festival in the south in 2007
Number of tweets grew from 2Million in 2007 to 340 billion per
day in march 2012
Twitter continues to grow enabling users to stream tweets into
their WordPress blogs and even into presentations using Prezi’s
(online presentation software)
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The Twitter Story, cont.
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Twitter began its business with venture capital. This begged the question: what is its business
model, and where is its revenue stream?
Twitter found a way to monetize the high traffic it had: by selling advertising
In 2012 twitter was successful selling these products: promoted tweets, promoted trends, and promoted
accounts
These product targeted users based on twitter site searches
Dorsey said” that these ads get between 1-5 percent engagement from users
Twitter has serious side as well
Used for education (in China- UK- Austria- and USA)
For reporting in emergency situations
Surveys
Business fund raising ND PUBLIC RELATIONS
Some companies use it for customer service
With this much activity, customer value, and media recognition. Twitter is sure to build its
revenue from the business model to pay off those venture capitalists
How can it go wrong when it has celebrity followers such as Lady Gaga who brings her 28.3
million followers to the site
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Overview of the E-Marketing
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Planning Process
The e-marketing plan is a
blueprint
for e-marketing strategy formulation and
implementation.
road map to guide the firm, allocate resources, and
make decisions.
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Ex 3.1
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Two Common Types of Plans
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Napkin plan
Entrepreneursmay jot down ideas on a napkin.
Large companies might create a just-do-it, activity-
based, bottom-up plan.
The Venture Capital E-Marketing Plan
Isa more comprehensive plan for entrepreneurs seeking
start-up capital.
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Sources of Funding
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Bank loans
Private funds: friends and family- the smallest sources of capital-provide funds with
few requirements
Angel investor: invest hundreds of thousands of dollars-provide funds with few
requirements
Venture capitalists (VCs):
invest millions of dollars
Some banks, corporations, and consulting firms have established venture capital branches
to finance internet start-ups.
Obviously, investors aren’t stupid. They are looking for a well-composed business plan, and
more importantly, a good team to implement it.
VCs typically look for an exit plan—a way to get their money and profits out of the
venture within a few years. The golden exit plan is to go public and issue stock in an initial
public offering (IPO). As soon as the stock price rises sufficiently, the VC cashes out and
moves on to another investment.
VCs don’t even pretend that all their investments will be successful. But even if 1 out of 20
is an [Link] or [Link], the risk is well worth the reward.
©2009 Pearson Education, Inc.
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Seven-Step E-Marketing Plan
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1. Situation analysis
2. E-Marketing strategic planning
3. Objectives
4. E-Marketing strategy
5. Implementation plan
6. Budget
7. Evaluation plan
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Step 1: Situation Analysis
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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.
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SWOT Analysis Leading to
E-Marketing Objective
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Opportunities Threats
1. One Segment of our market is 1. Pending security law means costly
growing and untapped in our software upgrades.
industry. 2. Competitor X is aggressively using
2. Save postage costs through e-mail e-commerce.
marketing.
Strengths Weaknesses
1. Strong customer service 1. Low-tech corporate culture.
department. 2. Seasonal business: Peak is summer
2. Excellent Web site and database months.
system.
E-Marketing Objective: $500,000 in revenues from e-commerce in one year.
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Steps 2, 3, and 4 of the
E-Marketing Plan
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Differentiation
Segmentation
Step 2
Tier 1 Tasks
E-marketing
Positioning Targeting
strategic Step 3
planning
E-Marketing Objectives
Offer
CRM/PRM
(Product)
Step 4
Tier 2 Tasks
Value Communication E-marketing
(Price) (Promotion) strategy
Distribution
(Place)
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Step 2: E-Marketing Strategic Planning
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Market and product strategies, called Tier 1 tasks or
strategies, are outcomes of strategic planning.
Segmentation
Targeting
Differentiation
Positioning
Marketers conduct analyses to determine strategies.
Market opportunity analysis
Demand analysis
Segment analysis
Supply analysis
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Step 3: Objectives
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An objective in an e-marketing plan may
include the following aspects:
Task(what is to be accomplished)
Measurable quantity (how much)
Time frame (by when)
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Step 3: Objectives, cont.
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Most e-marketing plans aim to accomplish
objectives such as the following:
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
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Step 4: E-Marketing Strategies
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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
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Step 4: E-Marketing Strategies, cont.
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Distribution strategies
◼ Directmarketing
◼ Agent e-business models
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
into a database.
©2009 Pearson Education, Inc.
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Steps 2, 3, and 4 of the
E-Marketing Plan
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Differentiation
Segmentation
Step 2
Tier 1 Tasks
Positioning Targeting
Step 3
E-Marketing Objectives
Offer
CRM/PRM
(Product)
Step 4
Tier 2 Tasks
Value Communication
(Price) (Promotion)
Distribution
(Place)
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Step 5: Implementation Plan
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Tactics are used to achieve plan objectives
Marketing mix (4 Ps) tactics
Relationship management tactics
Marketing organization tactics
◼ Staff
◼ Department structure
Information-gathering tactics
◼ Web site log analysis
◼ Business intelligence and secondary research
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Step 6: Budget
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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)
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Revenues and Costs
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Revenue forecast
Intangible benefits, such as brand equity
Cost savings
E-Marketing costs
◼ Technology
◼ Sitedesign
◼ Salaries
◼ Other site development expenses
◼ Marketing communication
◼ Miscellaneous
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Step 7: Evaluation Plan
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Marketing plan success depends on continuous
evaluation.
E-marketers must have tracking systems in place to
measure results.
Various metrics relate to specific plan goals.
Today’s firms are ROI driven.
E-marketers must show how intangible goals will lead
to higher revenue.
Accurate and timely metrics can help justify
expenditures.
©2009 Pearson Education, Inc.
Publishing as Prentice Hall