E-Marketing, 3rd edition Judy Strauss, Adel I El-Ansary, and Raymond Frost Chapter 3: The E-Marketing Plan © Prentice Hall 2003 Overview Overview of the E-Marketing Planning Process Creating an E-Marketing Plan The Napkin Plan The Venture Capital E-Marketing Plan A Six-Step E-Marketing Plan Step 1—Situation Analysis Step 2—Link E-Business with E-Marketing Strategy Step 3— Formulate Objectives Step 4—Design Implementation Plan to Meet the Objectives Step 5—Budgeting Step 6—Evaluation Plan Overview of the E-Marketing Planning Process How can information technologies assist marketers in building revenues and market share or lowering costs? How can firms identify a sustainable competitive advantage with the Internet when so little is understood about how to succeed? Overview of the E-Marketing Planning Process The best firms have clear visions that they translate, through the marketing process, from e-business objectives and strategies into e-marketing goals and well-executed strategies and tactics for achieving those goals This marketing process entails three steps: - Marketing plan creation, Plan implementation, Evaluation/corrective action Overview Overview of the E-Marketing Planning Process Creating an E-Marketing Plan The Napkin Plan The Venture Capital E-Marketing Plan A Six-Step E-Marketing Plan Step 1—Situation Analysis Step 2—Link E-Business with E-Marketing Strategy Step 3— Formulate Objectives Step 4—Design Implementation Plan to Meet the Objectives Step 5—Budgeting Step 6—Evaluation Plan Creating an E-Marketing Plan E-marketing plan: It is a guiding, dynamic document that links the firm’s e-business strategy (e-business model) with technology-driven marketing strategies and lays out details for plan implementation through marketing management The e-marketing plan serves as a roadmap to guide the direction of the firm, allocate resources, and make tough decisions at critical junctures There are two common types of e-marketing plans: - The napkin plan, The venture capital plan E Legal - Ethical Technology Competition Other factors Internet Markets SWOT S P E-Business Strategy/ Model E-Marketing Plan E-Marketing Strategy Implementation Marketing Mix/CRM Performance Metrics Exhibit - E-Marketing Plan – Strategy Formulation and Implementation Overview Overview of the E-Marketing Planning Process Creating an E-Marketing Plan The Napkin Plan The Venture Capital E-Marketing Plan A Six-Step E-Marketing Plan Step 1—Situation Analysis Step 2—Link E-Business with E-Marketing Strategy Step 3— Formulate Objectives Step 4—Design Implementation Plan to Meet the Objectives Step 5—Budgeting Step 6—Evaluation Plan The Napkin Plan Dot-com entrepreneurs were known to simply jot their ideas on a napkin over lunch and then run off to find financing The big company version of this is the just-do-it An employee has an idea, and convinces management to just it These plans sometimes work and are sometimes even necessary but they are not recommended when substantial resources are involved Sound planning and thoughtful implementation are needed for long-term success in business Overview Overview of the E-Marketing Planning Process Creating an E-Marketing Plan The Napkin Plan The Venture Capital E-Marketing Plan A Six-Step E-Marketing Plan Step 1—Situation Analysis Step 2—Link E-Business with E-Marketing Strategy Step 3— Formulate Objectives Step 4—Design Implementation Plan to Meet the Objectives Step 5—Budgeting Step 6—Evaluation Plan E-Marketing Objective-Strategy Matrix Objective-strategy matrix presents the firm’s e-marketing strategies and accompanying goals Online Goals Online Advertising Find affiliates Gather customer information Improve customer service Increase brand name awareness Sell goods or services Database Marketing Online Strategies Direct Online Sales E-mail Viral Marketing No No No No Yes No Yes Yes Yes Yes No Yes Yes Yes No Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Exhibit - E-Marketing Objective-Strategy Matrix Source: Adapted from Embellix eMarketing Suite Overview Overview of the E-Marketing Planning Process Creating an E-Marketing Plan The Napkin Plan The Venture Capital E-Marketing Plan A Six-Step E-Marketing Plan Step 1—Situation Analysis Step 2—Link E-Business with E-Marketing Strategy Step 3— Formulate Objectives Step 4—Design Implementation Plan to Meet the Objectives Step 5—Budgeting Step 6—Evaluation Plan Step — Design Implementation Plan to Meet the Objectives Select: - Relationship management tactics, - The marketing mix (4 Ps), Other tactics to achieve the plan objectives Devise detailed plans for implementation Check the right marketing organization is in place for implementation Step — Design Implementation Plan to Meet the Objectives Information technologies are especially adept at automating these processes, this is why the information gathering tactics are important: - - Web site forms, feedback e-mail, and online surveys, Web site log analysis software helps firms review user behavior at the site and make changes to better meet the needs of users, Business intelligence uses the Internet for secondary research, assisting firms in understanding competitors and other market forces Overview Overview of the E-Marketing Planning Process Creating an E-Marketing Plan The Napkin Plan The Venture Capital E-Marketing Plan A Six-Step E-Marketing Plan Step 1—Situation Analysis Step 2—Link E-Business with E-Marketing Strategy Step 3— Formulate Objectives Step 4—Design Implementation Plan to Meet the Objectives Step 5—Budgeting Step 6—Evaluation Plan Step — Budgeting A key part of any strategic plan is to identify the expected returns from an investment Returns are matched against costs to develop a cost/benefit analysis, ROI calculation, or internal rate of return (IRR) Determine whether the effort is worthwhile During plan implementation, marketers will closely monitor actual revenues and costs To monitor of results are on track for accomplishing the objectives Revenue Forecast The firm uses an established sales forecasting method for estimating the site revenues in the short, intermediate, and long term Inputs: The firm’s historical data, industry reports, and competitive actions An important part of forecasting is to estimate the level of Web site traffic over time This number affects the amount of revenue a firm can expect to generate from its site Revenue streams: - Web site direct sales, Subscription fees, Sales at partner sites, fees - Advertising sales, - Affiliate referrals, - Commissions, and other Budgeting Intangible Benefits: Putting a financial figure on such benefits is challenging but essential for e-marketers What is the value of increased brand awareness from a Web site? Cost Savings: Money saved through Internet efficiencies is considered soft revenue for a firm E-Marketing Costs Costs for employees, hardware, software, programming, and more Some traditional marketing costs may creep into the e-marketing budget The cost of a Web site can range from $5000 to $50 million Few of the costs site developers incur: Technology costs: software, hardware, Internet access or hosting services, educational materials and training, and other site operation and maintenance costs Site design Web sites need graphic designers to create appealing page layouts, graphics, and photos E-Marketing Costs Other costs site developers incur: Salaries All personnel that work on Web site development and maintenance are budget items Other site development expenses If not included in the technology or salary categories, any other expenses will be here (registration of multiple domain names and hiring consultants) Marketing communication All advertising, public relations, and promotions activities, both online and offline, to draw site traffic Search engine registration, online directory costs, e-mail list rental, prizes for contests, and more Miscellaneous Other typical project costs might fall here— expenses such as travel, telephone, stationery printing to add the new URL, and more Overview Overview of the E-Marketing Planning Process Creating an E-Marketing Plan The Napkin Plan The Venture Capital E-Marketing Plan A Six-Step E-Marketing Plan Step 1—Situation Analysis Step 2—Link E-Business with E-Marketing Strategy Step 3— Formulate Objectives Step 4—Design Implementation Plan to Meet the Objectives Step 5—Budgeting Step 6—Evaluation Plan Step — Evaluation Plan Once the e-marketing plan is implemented, its success depends on continuous evaluation The tracking systems should be in place before the electronic doors open What should be measured? The plan objectives need to be evaluated with: - Balanced scorecard for e-business - ROI … Key Terms •Angel investors •Online bidding •Demand analyses •Partner Relationship Management (PRM) •Direct marketing •Dynamic pricing •E-marketing plan •Market Opportunity Analysis (MOA) •Segment analysis •Situation analysis •Supply analyses •Venture Capital (VC) Review Questions What are the six steps in an e-marketing plan? Why entrepreneurs seeking funding need a venture capital e-marketing plan rather than a napkin plan? What is the purpose of the marketing opportunity analysis and the segment analysis? What four elements in tier one and five elements in tier two are devised for e-marketing strategy? What is the purpose of an e-marketing objective-strategy matrix? How managers use budgeting within the e-marketing planning process? Why e-marketing component? plans need an evaluation Discussion Questions If you had money to invest, what would you look for in a venture capital e-marketing plan? What kinds of questions should a firm ask in developing an e-marketing plan to serve customers in current markets through an online channel? Why is it important for e-marketers to specify not only the task but also the measurable quantity and time frame for accomplishing an objective? Why would the management of American Airlines expect its e-marketers to estimate the financial impact of intangible benefits such as building brand equity through e-mail messages to frequent flyers? ... 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. .. customers to a Web site and to interact with brick -and- mortar customers Firms use Web pages and e-mail to: - Communicate with their target markets and business partners, - Build brand images, - Create... psychographic, and past behavior toward the descriptors help firms identify potentially attractive markets Allows the company to select its target market and understand its characteristics, behavior, and