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E-MARKETING 5/EJUDY STRAUSS AND RAYMOND FROST

Chapter 3: The E-Marketing Plan

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Chapter 3 Objectives

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 andhighlight the use of an objective-strategy matrix.

Describe the tasks that marketers complete as theycreate e-marketing strategies.

List some key revenues and costs identified duringthe 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

SLs 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 andconnect with SLs residents.

In-world advertising revenue in the U.S. was $186million in 2005.

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The Second Life Story, cont.

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Research firm Gartner Group believes that 80percent of active online users will join a virtualworld by 2010.

Are you or your friends a member of a virtualworld today?

Do you think you might join one in the future?

Do you think SL represents a good businessopportunity?

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Overview of the E-MarketingPlanning Process

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The e-marketing plan is a blueprint for e-marketing strategy formulation andimplementation.

The plan serves as a road map to guide thefirm, 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

Review the firms environmental and SWOT

analyses.

Review the existing marketing plan and any

other information that can be obtained aboutthe company and its brands.

Review the firms e-business objectives,

strategies, and performance metrics.

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SWOT Analysis Leading toE-Marketing Objective

Opportunities Threats

1. Hispanic markets growing and

untapped in our industry.

2. Save postage costs through e-mail

marketing.

1. Pending security law means costly

software upgrades.

2. Competitor X is aggressively using

e-commerce.

Strengths Weaknesses

1. Strong customer service

department.2. Excellent Web site and database

system.

1. Low-tech corporate culture.

2. Seasonal business: Peak is summermonths.

E-Marketing Objective: $500,000 in revenues from e-commerce in one year.

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Step 2: E-Marketing Strategic Planning

Market and product strategies, called Tier 1 tasks orstrategies, are outcomes of strategic planning. Segmentation Targeting

Differentiation Positioning

Marketers conduct analyses to determinestrategies. Market opportunity analysis Demand analysis Segment analysis Supply analysis

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Step 3: Objectives

An objective in an e-marketing plan mayinclude 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 accomplishobjectives 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 sizeAchieve customer relationship management goals

Improve supply chain management

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Step 4: E-Marketing Strategies

Tier 2 strategies include strategies related tothe 4 Ps 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 strategiesRelationship management strategies

Some firms use CRM (customer relationshipmanagement) or PRM (partner relationship

management) software to integrate customercommunication and purchase behavior into adatabase.

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Steps 2, 3, and 4 of theE-Marketing Plan

Segmentation

Targeting

Value

(Price)

Differentiation

CRM/PRM

Positioning

Communication

(Promotion)Distribution

(Place)

Offer

(Product)

Step 3

E-Marketing Objectives

Step 4

Tier 2 Tasks

Step 2

Tier 1 Tasks

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Step 5: Implementation Plan

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

The plan must identify the expected returnsfrom 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

Marketing plan success depends oncontinuous evaluation. E-marketers must have tracking systems in place

to measure results.

Various metrics relate to specific plan goals.

Todays 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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All rights reserved. No part of this publication may be reproduced, stored in a

retrieval system, or transmitted, in any form or by any means, electronic,

mechanical, photocopying, recording, or otherwise, without the prior written

permission of the publisher. Printed in the United States of America.

Copyright 2009 Pearson Education, Inc.Publishing as Prentice Hall