01 e Markt Plan

8/2/2019 01 e Markt Plan

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The E-Marketing Plan


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Creating an E-Marketing Plan

Why would a company pay

so much to design and build

its Internet presence ?

To protect the corporate and

brand identitiesComplexity of designing e-

marketing strategies


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Creating an E-Marketing Plan

An E-Marketing Plan is a companysblueprint for strategic direction

Ad hocCompanies develop strategies

without the development of an E-

Marketing Plan

Example: www.yahoo.com

75% of e-business will fail due to flaws

in planning
http://www.yahoo.com/http://www.yahoo.com/


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A Seven Step Marketing Plan

1. Conduct a situation analysis.

2. Identify target stakeholders

3. Set objectives

4. Design marketing mix strategies to meet

objectives

5. Design action plan6. Develop a budget

7. Develop an evaluation plan


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Exhibit 8 - 2 Marketing Plan Process


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Large Web sites are not profitable ventures, butthey are more concerned with establishing their

brands, ex: Amazon

Start-Up companies are funded by:

Private funds (family and friends)

Angle InvestorsVenture capitalist (VCs)

I invest in people, not ideas, Arthur Rock (VC), Ifyou find good people, if theyre wrong about the

product, theyll make a switch.

Venture Capital E-Marketing Plan


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VCs look for plans that show:

the e-business idea is a solid one,

the entrepreneur has some idea of how to run the

business

Once the start up business begins to boom, the VC

looks for an exit plan, and the stock usually goes

public, IPO

The VC gets their money back and looks for

another investment

Venture Capital E-Marketing Plan


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Key Success Factors Key Dangers

Make it easy for customers to do

business with you.

Focus on the end customer for

your products and services.

Redesign your customer-facing

business processes from the endcustomers point of view.

Wire your company for profit:

Design a comprehensive, evolving

electronic business architecture.

Foster customer loyalty, the key

to profitability in electronic

commerce.

Dont completely redesign a

business to become an e-business.

Dont suspend good project

management rules in the name of e-

business.

Dont assume technology can doall the heavy lifting in e-business

implementation.

Dont focus solely on current

customers for e-business.

Stay alert for new competition.

Exhibit 8 - 3 Critical Success Factors and Dangers for E-Business

Source: Success from Seybold (1998); danger from GartnerGroup (1999)


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The Existing Marketing Plan

Working with existing information is the

best place to start, if you want to followcurrent positing strategies.


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Conduct an Environmental Scan

Legal/Political Environment

Taxation, access, copyrights, & encryption

Technological Environment

Communication Infrastructures

Bandwidths, and New browsing devices

Situation Analysis


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Conduct an Environmental Scan

USER Trends

Focus on how the net audience has changed over the last six

months, last year, etc

Are there any trends?

Is there any important target segments coming online?

World Economies

Understand overseas economies, also do they have the properinfrastructures to support what we are doing?

Situation Analysis


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Develop a Market Opportunity Analysis

- Includes both demand & supply analysis

Demand side, reviews potential profitability

Supply side, reviews competition, and findscompetitive advantages

- SWOT

Situation Analysis


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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

Exhibit 8 - 4 Key Internal Capabilities for E-Business

Source: Adapted from Kalakota (1999)

Si i A l i


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Situation Analysis

Develop a Market Opportunity Analysis

Market Opportunity Analysis includes both demandand supply analyses.

The demand portion reviews various marketsegments in terms of potential profit.

The supply analysis review competition in selectedsegments that are under consideration

The purpose of the supply analysis is to assist inforecasting segment profitability and findingcompetitive advantages in the online market.


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SWOT

Strengths, Weaknesses, Opportunities and Threats

This analysis objectively evaluates the

companys strengths and weaknesses withrespect to the environment and the

competition


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Strategic Opportunities A Key element in setting strategic goals is to take stock of

where the company currently is and the level of commitmentthat it wishes to make to a business.

The lowest level impacts individual business activities such asorder processing.

The next level impacts business processes such as customerrelationship management

The next level, enterprise is where the firm automates many

business processes in a unified system

EB = EC + BI + CRM + SCM + ERP

ERPthe key here is to make sure that the processes work

well together in a unified system


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Activity

Business Process

Enterprise

PurePlayBusiness transformation(competitive advantage,

industry redefinition)

Effectiveness(Incremental sales,customer retention)

Efficiency(Cost

reduction)

Pure dot-com(E*Trade)

Click and Mortar(eSchwab)

Customerrelationshipmanagement

Brochureware,Order processing

Levelofbusinessimpact

Exhibit 8 - 5 Level of Commitment to E-Business

Source: adapted from www.mohanbirsawhney.com
http://www.mohanbirsawhney.com/http://www.mohanbirsawhney.com/http://www.mohanbirsawhney.com/http://www.mohanbirsawhney.com/http://www.mohanbirsawhney.com/http://www.mohanbirsawhney.com/http://www.mohanbirsawhney.com/


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Pure Play

Advantages

They are not held to the

same standards of

profitability as the brick-

and-mortar stores

They are held to be

smaller and have more

agile cultures able to

move quickly in responseto market fluctuations

The final level is comprised

of internet pure plays

Pure plays are companies

without brick and mortar

presence


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Activity Level Business Process Level Enterprise Level

Online market research

Online purchasing

Brochureware

Content publisher

E-mail

Online advertising

Online sales promotions

Order processingCost reduction using

electronic means

Negotiated pricing online

Segmented pricing online

Content sponsorship online

Knowledge management

Customer relationship

management (CRM)

Supply chain management

(SCM)

E-Commerce: tangible

products

Direct sellingCommunity building online

Affiliate program

Database marketing

E-tailer

Bit vendor

Online exchange

Online brokerage

Metamediary

Infomediary

Virtual mall

Shopping agentReverse auction

Online buyers coop

Mass-customization tools

Exhibit 8 - 6 Menu of Opportunities at Various Levels

of Commitment


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Identify Target Stakeholders

When multiple targets are identified, they should beranked in order of importance so resources can beallocated accordingly

Each market should be well profiled by itscharacteristics, behavior and desires

Firms must understand the value proposition foreach market.


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Set Objectives

Use carefully worded objectives that flow from

plan analyses that have a task, contain a specific

measurement device, and has a time frame foraccomplishment.

D i M k i Mi S i


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Design Marketing Mix Strategies to

Meet the Objectives Strategic justificationshows how the strategy

fits with the firms overall mission and objectives

Operational justificationidentifies andquantifies the specific process improvements thatwill result from the strategy

Technical justificationshows how technology

will fit and provide synergy with current ITcapabilities

Financial justificationexamines cost/benefit

analysis


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Marketing Mix Component Chapter Business Model

Product 4 Digital value through new products

Price 4 Cost reduction using E-marketingNegotiation

Segmented pricing

Distribution 5 Content sponsorship

Direct selling

Infomediary

Intermediaries

Broker: Online exchangeOnline auction

Agent: Manufacturers agent

Affiliate program

Metamediary

Virtual mall

Shopping agent

Reverse auction

Buyer cooperative

E-tailer bit vendorTangible products

Marketing Communication 6 Content publishing

E-mail

Community building

Online advertising

Online sales promotion

Relationship Marketing 7 CRM

Exhibit 8 - 7

Selected E-Business

Models Are

Also Marketing

Strategies


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Action Plan

Project Scope

Site Development

Site Promotion

Site Maintenance

An action plan will decide which strategies are best to

promote the business or company. Having decided that

an Internet presence is essential the following

considerations are necessary:


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Web Site Example:

Project ScopeTo decide the level of Internet and e-commerce commitment

that is both beneficial, cost effective and advantageous to the

company.

To evaluate the need for e-mail contact between stakeholders

and staff, and what staffing is necessary to implement such a

program.


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Site Development

Build, Buy or Rent, the Following ConsiderationsApply:

Outsourcingspeeds completion of the project

Personnel Cost Savings Faster Loading Site

User Friendly Product

More Professional Graphics & Information

Outsourcers are aware of Copyright Rules First Impression is Paramount

http://www.forrester.com/
http://www.forrester.com/http://www.forrester.com/


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Agency (Affiliation) Headquarters

1999

Projected

Revenue (in

thousands)

%

Increase

over 1998

1999

Employees

1 Sapient 1 Cambridge,

MA

276,844 67.9 2,011

2 iXL, Atlanta 1 Atlanta *214,000 230.8 *1,700

3 USWeb/CKS 1, 2 San Francisco *170,000 86.8 *1,050

4 Razorfish (Omnicom) 1 New York 150,000 983.6 1,300

5 Digitas 2 Boston *135,000 237.5 700

6 TMP Worldwide 1, 2 New York *125,000 149.2 *350

7 c2o Interactive Architects

(EDS)

1

Dallas 125,000 177.8 350

8 Euro RSCG Worldwide

Interaction (Havas) 1

New York 120,900 54.0 793

9 AppNet 1 Bethesda, MD 110,000 521.5 1,000

1

0

Grey New Technologies 1 New York 106,000 41.3 850

1

1

OgilvyInteractive 1

(WPP)

New York 100,000 66.7 650

1

2

Agency.com1 (Omnicom) New York *100,000 278.0 1,000

1

3

Luminant Worldwide

(Y&R)

Dallas 95,883 NA 800

1

4

Organic (Omnicom) San Francisco *80,000 188.8 681

1

5

Xceed1 New York 74,000 19.4 450

Exhibit 8 - 8 Top

15 U.S. Interactive

Advertising

Agencies

Source: Adapted

from AdweekOnline

(www.adweek.com)
http://www.adweek.com/http://www.adweek.com/http://www.adweek.com/http://www.adweek.com/http://www.adweek.com/http://www.adweek.com/


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Site Promotion

Register Site with Search Engines

Use Metatags, Keywords and HTML tags

List Site with Appropriate Directories

Utilize Electronic Press Releases

Link to Complimentary Web Sites

Incorporate Web Site Address in all Media

Consider Banner Advertising

Consider Hiring an Outside Firm to Promote Web Site

Links to Site Promotion & Search Engines:

www.yahoo.com/ www.hotbot.com

www.excite.com http://www.adjacency.com/
http://www.yahoo.com/http://www.hotbot.com/http://www.excite.com/http://www.adjacency.com/http://www.adjacency.com/http://www.excite.com/http://www.hotbot.com/http://www.yahoo.com/


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Exhibit 8 - 9 Adjacency (Sapient) Builds and Promotes Web Sites

for Clients

Source:www.adjacency.com
http://www.adjacency.com/http://www.adjacency.com/http://www.adjacency.com/http://www.adjacency.com/http://www.adjacency.com/http://www.adjacency.com/


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Site Maintenance

Decide How Often to Update Site

Decide Whether to Outsource or Update inHouse

Evaluate the need for Human Resource for WebSite Maintenance


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BudgetingEvaluate the cost/benefits analysis &

Identify Potential Revenue Streams:

E-CommerceDo we sell on-line?

Content SponsorshipBanners, Buttons,

Sponsorships

Intermediary FeesBroker and Agent Fees


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Revenue Streams

Initial funds to support a Web site come from:

Investors

Loans

Firms operating budget

Revenue streams that produce Internet profitscome mainly from:

Direct sales

Advertising sales

Other fees


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Cost Savings

By Selling and Marketing On-line

Eliminating elements of the traditionaldistribution chain

Increases possibilities of greater revenue

Saves on traditional marketing costs (printing,postage)

Increases target market to world-wide audience


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Intangible Benefits

Goodwill

Brand Equity

Audience Measurement

Public Relations

Customer Satisfaction

The industry is developing exponentially

creating new marketing opportunities, although

they may be hard to measure


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Cost/Benefit Analysis

Analyze the cost

of e-marketing versus the benefits

Revenue increases

Cost decreases

Intangible benefits

Goodwill Brand/Image Building

Relationship Building

ISP Costs

Hardware and

Software Costs

Design Costs

Maintenance Costs

Benefits Costs


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Evaluation Plan

Monitor and Track Site Usage Cognitive

Measure unique visits and impressions

Attitudinal

Survey customers for brand satisfaction

objective: CRM, firm would use AOV

(average order value) and LTV (lifetime

customer value) Transactive

Measure purchases, site traffic, previous

paths and click-through rate


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The End

01 e Markt Plan

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