e-comma e-marketer bm 02: business strategy€¦ · 3.2 porter’s five forces 3.3...

e-COMMA

e-MarketerBM 02: Business Strategy

e-COMMA | e-Marketer | BM 02: Business Strategy1

e-Marketer | BM 02: Business StrategyContents1. Business Strategy1.1 Strategic Goals1.2 Strategic Process1.3 Strategic Triangle1.4 Strategy Implementation

2. Strategic Management2.1 Behavioural Options2.2 Push and Pull Strategies

3. Tools3.1 PEST Analysis3.2 Porter’s Five Forces3.3 Stakeholders Analysis3.4 SWOT Analysis3.5 SMARTER Goals

4. Business Strategy and Action Plan

5. Digital Marketing Strategy


Sources and further materialDess, G.G., Lumpkin, G.T. , Eisner, A.B. 2007. Strategic Management. Boston: McGraw-Hill

De Waal, A.A. 2012. What makes a High Performance Organization. Hawkhurst: Global Professional Publishing.

The Community Roundtable. The Community Management Handbook

The Community Roundtable. The state of community management report, 2017

Mangini A., Perlman S., Fredrick J., Arkenberg Ch. Strategies for effective communicationin the new digital media landscape. https://www.tellusventure.com/downloads/reference/santa_cruz_strategies.pdf

Jasper Visser, Jim Richardson, 2013. Digital engagement in culture, heritage and the arts. Creative CommonsAttribution. http://digitalengagementframework.com/digenfra3/wp-content/uploads/2016/02/Digital_engagement_in_culture_heritage_and_the_arts.pdf

e-COMMA | Community Management | BM 02: Community Management Strategy

e-Marketer | BM 02: Business Strategy

Sources and further material Dave Chaffey & Fiona Ellis-Chadwick (2015): Digital Marketing: Strategy, Implementation & Practice https://www.youtube.com/watch?v=czOUTB3JtDI https://www.youtube.com/watch?v=czOUTB3JtDI http://webyogi.co.uk/how-to-write-digital-internet-marketing-plan-2017/

e-COMMA | Community Management | BM 02: Community Management Strategy

e-Marketer | BM 02: Business Strategy

e-COMMA

1 Business Strategy


1.Business Strategy1.1 Strategic Goals

General Strategic Goals

• mastering complexity and stimulate business development;

• recognising and developing future earnings potential;

• generating scopes of action and alternative options;

• balancing future action with regard to environmental, technological and comparative issues, also concerning ressources and risks.


1.Business Strategy1.2 Strategic Process

Philosophy

Goals

Strategies

Instruments

Ma

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ese

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Orga

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trollin

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The strategic process refers to

interrelated key elements.

They are all frequently checked

and adjusted by customer/market

research and it is evaluated

whether the organisation reaches

them.

The overall philosophy of the

organisation leads to strategic

goals. These are pursued by

developed strategies that are

carried out through specific

instruments.


§ Statements about organisation goals

§ 2 principal constituents§ Definition of business

volume§ Existing skills

§ Provides§ Basic leadership principles§ Expectations or challenges

for the company§ Declaration of

commitment for the employees on corporate level

Mission of the organisation§ The relation between the

company and the most important stakeholders (employees, customers, shareholders, providers)

§ Definition of the basic company policy (management style, financial policy, human resources management, technology, marketing etc.)

§ Statement about the companyvalues (ethics, rules of conductetc.)

§ Ideals, that inspire and motivatethe employees

Philosophy of the organisationMission and philosophyof the organisation buildthe basis for anystrategic decision. Theyneed to be consideredin strategy planning.


1.Business Strategy1.1 Strategic Goals

Strategy implementation: The crucial mistake in the operationalisation of strategies often lies in a poortranslation of the organizational or the overall project objectives in aligned, concerted, concrete actions. Makesure the operative level is in line with the organisation’s strategy.

Operative level§ Individual project

planning § Individual project

control

Strategist level§ Organisation’s strategies§ Organisation’s goals

??? ??????




Analysis

StrategicDevelopment

StrategicControlling

StrategyImplementation

StrategicManagement

• Analysis• Business analysis (target market, sales,…)• Environment analysis (competitors, market trends)

• Strategic Development• Strategic Options• Evaluation of these options• Development of a strategy

• Strategic Implementation• Measurements and project plan (what and how)• Organisation and implementation (who and when)

• Strategic Controlling and Adaptation• Revision• Progress monitoring• Variance analysis• Adaptation of the strategy

Elements of Strategic Management


Analysis

Strategy Evaluation

Initiation of the

strategy process

Environment

Company

Vision & goals

Business area

strategy

Functional strategy

Overall company strategy

Strategy implementation

1. Business Strategy1.2 Strategic Process


Customers

Company

Potential for solving customers problems

Potential for solving customers problems

Strengths and weaknesses

Competitionbenefits

Competitors

1. Business Strategy1.3 Strategic Triangle

The strategic triangle (3 Cs)displays the key interrelatedfactors that are crucial foreconomic success.

All factors need to be taken into account to develop a decent strategy.


Strategic thinking leads to the operative level meaning setting up a business strategy and action plan,including the following steps (see graphic):

Source: Meffert, H., Burmann, Chr. & Mirchgeorg, M. (2000), p. 289.

1. Business Strategy1.4 Strategy Implementation


Analysis of current/ latest situation

Definition of goals

Strategy on how to reach them

Action plan incl. responsibility &

timeframe

Evaluation

Strategy plans are set up on a regular basis, eitherdependent on a project timeline or on timeframes(business year, business quarter). The latest evaluation isto be taken into consideration.

Source: based on Becker, J. (2009), p. 143.

Strategies set the frame for the following strategic actions (what goals are pursued? When are they intended to be reached?) The operative level refers to the implementation of the strategic decisions (How do we reach the goals? Who is responsible? Who does what?)

Strategic level = predisposition Tactics/Operative level = actual disposition

§ Constitutive

§ Essential decisions

§ Long-/medium-term orientation

§ Indirect effects

§ Complex decision-making

§ Relevant to the future

§ Comprehensive solutions

§ Rather quality-oriented

§ Situative

§ Habitual decisions based on strategic predispositions

§ Short-term orientation

§ Immediate effects

§ Well-structured decision-making

§ Relevant to the present time

§ Particular solutions

§ Rather quantity-oriented

“Do the right things” “Do things right”

Strategy

Instruments


1. Business Strategy1.4 Strategy Implementation

e-COMMA

2 Strategic Management


Strategic options§ peaceful behaviour

(motto: “The market is open to everyone“)

§ cooperative behaviour (motto: “Together we are strong”)

§ aggressive behaviour(motto: “Offence is the best defence”)

§ conflict behaviour (motto: “We opt for our benefits only; let's

see how far we can go”)

subspecies:§ strategy of direct attack

§ surrounding strategy

§ strategy of a flank attack

§ guerilla strategy

2. Strategic Management2.1 Behavioural Options


Innovation ImitationBehaviouraldimension

Competition avoidance

Competitionstimulation

avoidance adaptation

conflict cooperation

There is a difference between cooperation, conflict, adaptation and avoidance strategies.

2. Strategic Management2.1 Behavioural Options


Push and Pull strategies

Push: organisation pushes product to the market, e.g. by offensive marketing.

Pull: organisation reacts on market demands, e.g. individual marketing toarouse the customer’s interest and influence the desire. The customer is topull the product into the shops.

2. Strategic Management2.2 Push and Pull Strategies


Push PullCommunication Monologue Dialogue and discussion

Information flow Organisation as sender Bilateral transfer, transparent information flow, moderation

Customer relation Organisation superior to customer Customer as the equal of the organisation

Information quality Selected AuthenticPace Slow Quick and spontaneous

2. Strategic Management2.2 Push and Pull Strategies


e-COMMA

3 Tools


3. Tools3.1 PEST Analysis

A PEST analysis focuses on macro-environmental factors relevant for strategy buildingIt helps to condsider the overall market situation and supports decision making accordingto the business goals.

PEST refers toPolitical

EcononmicSocio-cultural

and Technological factors



Political factors refer to governmental interventions and the legal frame of the economy. Politicalstability may also be a factor.

Economic factors refer to several economic indicators like economic growth, inflation rate, interestrates and so on.

Socio-cultural factors include a wide range of social factors, like language and cultural differences,population characteristics (target market or employees), social trends.

Technological factors refer to current technological trends like digitisation, or to specific technicaltools of relevance.

These factors are adopted in business analyses and can be found in the SWOT analysis.


Political/legal environment

• antitrust laws• taxation laws• deregulation

philosophies• labor laws• educational

philosophies and policies

Economicenvironment

• inflation rates• interest rates• trade deficits or

surpluses• budget deficit or

surpluses• personal savings rate• business savings rate• gross domestic

product

Sociocultural environment

• women in the workforce

• workforce diversity• attitudes about the

quality of work life• concerns about the

environment• shifts in work and

career preferences• shifts in preferences

regarding product and service characteristics

Technological environment

• product innovations• applications of

knowledge• focus of private and

government-supported R&D expenditures

• new communication technologies

e-COMMA | e-Marketer | BM 02: Business Strategy


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Further Reading on PEST Analyses :

https://www.businessballs.com/strategy-innovation/pest-market-analysis-tool-20/

https://www.businessnewsdaily.com/5512-pest-analysis-definition-examples-templates.html

http://pestleanalysis.com/pest-analysis-template/

https://www.youtube.com/watch?v=_YhEpBvlO2M

https://www.youtube.com/watch?v=v7pUv_ZWnyM


Rivalry among

competing firms

Threat of new

entrants

Bargaining power of

buyers

Threat of substitutes

Bargaining power of suppliers

Industry has more direct effect on firm’s strategiccompetitiveness than general environment.

Firm’s strategy is chosen because of the influence of anindustry’s characteristics.

The intense of industry competition and an industry’sprofit potential (measured by long-run return on investedcapital) are functions of five forces of competition.

Industry – a group of firms producing products that areclose substitutes

Product definition - satisfying the same customers needsand being made of the same components andmaterials

Geographical definition - serving the customers at thesame area


3. Tools3.2 Porter‘s analysis

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e-COMMA | Community Manager | BM 02: Business Strategy

3. Tools3.2 Porter’s analysis

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Area § How big data analytics could be applied to merchandising optimisation to impact yourorganization’s overall industry positioning and competitiveness

Competitive Rivalry § use cross-media Conversion Attribution Analysis across search, display, social, and mobile advertising to outflank competitionon cross-channel pricing, placement, and promotional effectiveness;

§ leverage A/B Testing to uncover merchandising messaging and placement insights that drive category market share growth andincreased shopping occurrence profitability;

Buyer Power § leverage Sentiment Analysis from social media sites to identify and quantify micro-population merchandising trends andinsights to improve customer segmentation, targeting, pricing, and packaging effectiveness;

§ leverage real-time customer sales and engagement data to optimise in-flight merchandise targeting to increase on-sitecustomer monetisation (e.g., increase conversion rates, increase up-sell and cross-sell effectiveness);

§ leverage merchandising Recommendation Engines to improve the customer experience (e.g. net promoter scores, repeatpurchases, loyalty), optimize merchandising margins and minimise merchandising markdowns;

Supplier Power § leverage detailed point-of-sale (POS) and RFID data to identify “hot” products more quickly than competitors in order to “lockin” supplier inventories and favorable terms and conditions;

§ leverage detailed POS and RFID data to cancel and/or return slow movers and no movers faster than competition in order tominimise merchandise markdown and inventory carrying costs;

Product and TechnologyInnovation

§ provide a software-as-a service dashboard and predictive analytics platform that leverages merchandising data and insights tohelp suppliers minimise their procurement, inventory and distribution costs;

§ couple merchandising data and insights with predictive analytics capabilities that recommends in-flight supply chain andinventory adjustments to your key channel and distribution partners;

NewMarket Entrants § constantly monitor social media and mobile data for merchandising trending insights that can be used to pre-empt new marketentrants.

Source: https://infocus.dellemc.com/william_schmarzo/big-data-mba-course-101a-unit-ii/

Example

Stakeholder analysis

Stakeholder analysis is an important part of external environment analysis and is particularly importantin building a strategy that will encompass community management as stakeholders will later on beidentified as potential members of the community.In analysing stakeholders the critical part is to comprehensively identify all groups of stakeholders andthen identify their main objective and expectations.

LoNGPEST

LoNGPEST analysis is a combination of PEST analysis and analysis of stakeholders.On the matrix of levels (local, national, global) and categories (political/legal, economic, socio-cultural,technological) all stakeholders and trends should be identified.


3. Tools3.3 Stakeholder analysis

27

Stakeholder Main objective Sample expectationsShareholders and owners

Increase of the business’ value Increase of the business value, increase of theshares price, full and reliable information,respecting corporate governance rules, reliablemanaging bodies, strengthening business image

Employees Quality of life and professionalfulfillment

Satisfactory salary, respecting employee’s rights, fulland reliable information, job satisfaction,development opportunities, conditions of work,skillfull management

Cooperatives and suppliers

Survival and development Partner’s reliability, meeting obligations, economicprofitability, ethics, culture and professionalism inaction, cooperation, quality of communicationprocess

3. Tools3.3 Stakeholder Analysis

e-COMMA | Community Manager | BM 02: Business Strategy28


29e-COMMA | e-Marketer | BM 02: Business Strategy

Stakeholder Main objective Sample expectationsCustomers Meeting the needs Economic traits of product/service, quality of product/service,

clear, reliable and available information, product/service design,satisfactory selling process and customer service, personalisingrelationship with the customer, image of the businesssafety of the product/service, accountability towards customer,ethical behaviour

Competition Obeying market rules Honest competition, clarity and transparency of competitiveactions, culture of business activities, ethical behaviour towardscompetition

Financial institutions Minimising risk Capital profit, reliable financial results, meeting obligationstransparency, reliability and comprehensiveness of information,competent managing bodies, obeying corporate governancerules



Stakeholder Main objective Sample expectationsGovernmentinstitutions

Economic growth,welfare

Obeying the law, obeying financial obligations towards the state,cooperation in stimulating economic growth, employmentstability

NGOs, localcommunities

Social fairness, welfare

Cooperation in stimulating local growth, obeying financialobligations towards local community, supporting NGOs andcharities

National and regionalcommunity

Fairness, localdevelopment

Safe and non-harming activity, protection of the environment,sponsoring cultural, sport and scientific events, responsibility forthe environment, taking actions supporting structural change, co-funding activities aimed at regional development

3. Tools3.4 SWOT analysis

The SWOT analysis shows strengths and weaknesses as well as opportunities and threats of aproject or strategic goal.

Strengths and weaknesses refer to internal factors, the organisation‘s current situation, likepersonal strengths and specific weaknesses like knowledge gaps.

Opportunities and Threats refer to external or environmental factors, like the PEST factors.

A SWOT analysis is displayed in a matrix.

As an overview, it allows to develop adherent measurements to reach the defined goals.


SWOTSWOT analysis (or SWOT matrix) is an analysis ofstrengths, weaknesses, opportunities, and threatsand is a structured planning method that evaluatesthose four elements of an organisation, project orbusiness venture.A SWOT analysis can be carried out for a company,product, place, industry, or person. It involvesspecifying the objectives of the business or projectand identifying the internal and external factors thatare favourable and unfavourable to achieve thatobjective.

Strengths: characteristics of the

business or project that give it an advantage over others

Weaknesses: characteristics of the

business that place the business or project at a disadvantage relative to

others

Opportunities: elements in the environment that the business or project

could exploit to its advantage

Threats: elements in the environmentthat could cause trouble for

the business or project



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Determination of the relevant influencing factors of market and company

Company-related Market-based

Potential analysis(own company)

Competitive analysis (competitor)

Market analysis(customers, suppliers,

medium sized company)

Environmental analysis(PEST)

Strengths &Weaknesses

Opportunities & Threats

Connection

Source: NDH, p. 861.



Strengths Opportunities

Weaknesses ThreatsInte

rnal

Ana

lysi

s Extreme analysis

The core of the SWOT-Analysis form the questions which aim to design a picture of

the current company with the development options

retreat

Development

SWOT




Further material on SWOT analysis :

https://www.youtube.com/watch?v=_YhEpBvlO2M

http://creately.com/blog/examples/swot-analysis-templates-creately/

https://templates.office.com/en-us/SWOT-analysis-examples-TM01875476

https://www.smartdraw.com/swot-analysis/


3. Tools3.5 SMARTER Goals

Strategic Management includes the definition of objectiveswhat aim do you want to reach?Follow the SMARTER criteria:Specific – be precise

Measurable – define the measurable outcomeAchievable – be realistic

Relevant – make sure, the goal fits to holistic strategiesTime-bound – set a due date

Evaluated – measure the successReviewed – gather feedback

Yemm, Graham (2013). Essential Guide to Leading Your Team : How to Set Goals, Measure Performance and Reward Talent. Pearson Education. pp. 37–39


https://en.wikipedia.org/wiki/Pearson_Education

3. Tools3.5 SMARTER Goals

• pursuing these goals can be measured by setting up a list of milestones;

• define which goal or interim result will be reached when;

• which are the key performance indicators (KPI)?

• KPI are measurable interim results or outputs that are suitable to prove the strategicprogress;

• KPI are useful for a proper evaluation of the business strategy plan.


e-COMMA

4 Business Strategy andAction Plan


Strategic Plans are of different scope, dependant on their timeframe, the projects covered,the audience. They contain:• a detailed business background;• a detailed analysis of the current business situation and the current environmentalconditions;• a precise description of the envisaged goals and a list of milestones as key performanceindcators (KPI);• a decent overview of the action plan (see template).See also: https://www.smartsheet.com/free-strategic-planning-templateshttps://managementhelp.org/strategicplanning/actionplanning.htm



E-Marketing and action planAs an e-Marketer, you need to set up a plan for the e-marketing tasks and offer guidancefor the implementation. Set up a realistic plan, distribute the tasks and accompany theirimplementation.


Task Responsibility Date Due Publishing Date Goal

What needs tobe done?

Who does it? Until when? When to publish? Part of which strategicgoal?

What needs tobe done?

Who does it? Until when? When to publish? Part of which strategicgoal?


As an e-Marketer, you accompany the Content Management and supervise the editorial strategy. Thisincludes collaborative work on the content management plan, as proposed below.


Timeframe (date, week, period of marketing tactic)

Channel Content Responsibility Date Due Publishing Date andTime

Goal

i.e. Twitterreference link

What? Title, Media (picture,

video,…)

Who does it? Untilwhen?

When to publish? Part of whichstrategic goal?

i.e. Facebookreference link

What? Title, Media (picture,

video,…)

Who does it? Untilwhen?

When to publish? Part of whichstrategic goal?


The action plans need to be adapted according to your goals, please modify if necessary.You may need another reference frame to structure various tasks. You may include web analytics. You maydo without naming responsible persons, etc. (Different templates are attached to this training module.)Alternative structure:


Goal Part of which Marketing strategy?

Channel Content Publishing Date and Time Web analytics

i.e. Twitterreference link

What? Title, Media (picture, video,…)

When to publish? Click rates/views

i.e. Facebookreference link

What? Title, Media (picture, video,…)

When to publish? Click rates/views


The action plan for the implementationof your strategy can be prepared invarious forms. You can refer to projectmanagement and use the most commontool – Gantt chart.A Gantt chart is a type of bar chart thatillustrates a project schedule. Ganttcharts illustrate the start and finish datesof the terminal elements and summaryelements of a project. Terminal elementsand summary elements comprise thework breakdown structure of the project.Critical part of Gantt chart aremilestones – tools used to mark specificpoints along a project timeline..


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4. Business Strategy and Action PlanOn a Gantt chart you can easily see:• the start date of the project;• what the project tasks are;• who is working on each task;• when tasks start and finish;• how long each task will take;• how tasks group together,

overlap and link with each other;• the finish date of the project.

e-COMMA

5 Digital Marketing Strategy


• business strategy relates to your product's/service's strengths,weaknesses, opportunities, threats. Once you've determined those,you will need a marketing strategy. You need to decide how you'llmake the world aware of your products/services - and inadvertentlydrive them to become your customers;

• a digital marketing strategy is a channel strategy designed to enablethe business to succeed by delivering outcomes from today’s keydigital environment.

e-COMMA | e-Marketer | BM 02: Business Strategy 46

5. Digital marketing strategy

An effective digital strategy will help the business adopt the righttactics to make a company successful online by:• identifying channel leads & sales targets;• budgets for customer acquisition, conversion, retention;• communicate benefits of using online channel to drive brand equity;• prioritise online audiences targeted by channel;• prioritise products sold by channel.



HOW TO BUILD DIGITAL MARKETING STRATEGY1. Build your buyer personas (location, age, income, job title, goals, hobbies, priorities).2. Identify your goals & the digital marketing tools you’ll need.e.g.: if your business’s goal is to increase online revenue by 20%, your goal as a marketer might be togenerate 50% more leads via the website than you did last year to contribute towards that success.3. Evaluate your existing digital marketing channels and assets.4. Audit and plan your owned media.

• audit your existing content;• identify gaps in your existing content;• create a content creation plan.

5. Audit and plan your earned media – analyse the traffic.6. Audit and plan your paid media – analyse existing paid media across each platform (e.g., GoogleAdWords, Facebook, Twitter, etc.) to figure out what’s likely to help you meet your current goals.7. Bring it all together - your strategy document should map out the series of actions you’re going to taketo achieve your goals, based on your research to this point.



https://blog.hubspot.com/marketing/digital-strategy-guide

e-comma e-marketer bm 02: business strategy€¦ · 3.2 porter’s five forces 3.3...

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