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E-MARKETING 5/E
JUDY STRAUSS AND RAYMOND FROST

Chapter 4: 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 Second Life Story
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 Second Life (SL) is a multiplayer online role-

playing game launched in 1999.
 SL had 2.3 million residents in 2008 who created
SL’s 3-D virtual world.
 Over 50,000 businesses, including Adidas, Pontiac,
IBM, and Toyota, have a presence in SL.
 Companies are using SL to build product buzz and
connect with SL’s residents.
 In-world advertising revenue in the U.S. was $186
million in 2005.

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 The Second Life Story, cont.
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 Research firm Gartner Group believes that 80

percent of active online users will join a virtual
world by 2010.
 Are you or your friends a member of a virtual world
today?
 Do you think you might join one in the future?
 Do you think SL represents a good business
opportunity?

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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.
 The plan serves as a 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
 Entrepreneurs may 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 is a more
comprehensive plan for entrepreneurs seeking start-
up capital.

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 Sources of Funding
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 Bank loans
 Private funds
 Angel investors
 Venture capitalists (VCs)

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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. Hispanic markets growing and 1. Pending security law means costly

untapped in our industry. software upgrades.
2. Save postage costs through e-mail 2. Competitor X is aggressively using
marketing. e-commerce.

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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 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
 Direct marketing
 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.

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 Steps 2, 3, and 4 of the E-
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Marketing Plan

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
 Site design
 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.

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