E-Marketing, 3rd edition Judy Strauss, Adel I. El-Ansary, and Raymond Frost Chapter 3: The E-Marketing Plan © Prentice Hall 2003 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 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 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 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. P Legal - Ethical Technology Competition Other factors E-Business Strategy/ Model Performance Metrics SWOT E-Marketing Plan E-Marketing Strategy Implementation Marketing Mix/CRM Markets Internet E S Exhibit 3 - 1 E-Marketing Plan – Strategy Formulation and Implementation 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 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 do 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 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 [...]... about the firm’s products, the markets currently served, and so forth The distribution plan: identifies areas where the products are currently sold and suggests geographic gaps that might be receptive to ecommerce Promotion plan information: gives clues about how the Internet fits with the firm’s current advertising, sales promotion, and other marketing communications The firm and brand positioning in the. .. strengths and weaknesses, emarketing initiatives, … Identify future industry changes Tier One E-Marketing Strategic Planning: Identifying brand differentiation variables and positioning strategies The understanding of the competition + the target(s) Differentiation of the products to provide benefits perceived as important by the target The positioning statement: the desired image for the brand relative... image for the brand relative to the competition Tier Two E-Marketing Strategic Planning The two Tiers are elaborated in an interactive process: It is difficult to know what the brand position should be without understanding the offer that comprises the brand promise The Offer: Product Strategies The organization can: - Sell merchandise, services, or advertising on the Web site, Adopt an e-business... Implementation Plan to Meet the Objectives Step 5—Budgeting Step 6—Evaluation Plan A Six-Step E-Marketing Plan Tasks Step Situation analysis Link e-business with e-marketing strategy 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... (MOA): The demand analysis = market segmentation analyses to describe and evaluate the potential profitability, sustainability, accessibility, and size of various potential segments The segment analysis in the B2C market with demographic characteristics, geographic location, selected psychographic, and past behavior toward the descriptors help firms identify potentially attractive markets Allows the company... intermediaries in the traditional channel for some sales Agent e-business models—Firms such as eBay and E*Trade bring buyers and sellers together and earn a fee for the transaction Marketing Communication Strategies The Internet spawned a multitude of new marketing communication strategies, both to draw customers to a Web site and to interact with brick -and- mortar customers Firms use Web pages and e-mail... Private funds (friends and family), - Angel investors, - Venture capitalists The Venture Capital E-Marketing Plan Investors are looking for a well-composed business plan, and more importantly, a good team to implement it The business plan should contain enough data and logic to prove that: The e-business idea is solid, The entrepreneur has some idea of how to run the business The Venture Capital... does it cost (in time and resources) to acquire a customer? How much does it cost to produce and deliver the product or service? How much does it cost to support a customer? How easy is it to retain a customer? The Venture Capital E-Marketing Plan VCs look for a way to get their money and profits out of the venture within a few years: - - The golden exit plan is to go public and issue stock in an... in an initial public offering (IPO), As soon as the stock price rises sufficiently, the VC cashes out and moves on to another investment All VCs’ investments are not successful But if even one out of 20 is an Amazon.com, the risk was well worth the reward 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... auctions, Create new brands for the online market, Simply sell selected current or enhanced products in that channel A firm must decide how online product prices will compare with offline equivalents considering the differing costs of sorting and delivering products to individuals through the online channel as well as competitive and market concerns The Offer: Product Strategies There are two online . e-marketing mix tactics. product/service offering pricing/valuation distribution/supply chain integrated communication mix Design relationship management tactics. Design information gathering. receptive to e- commerce. Promotion plan information: gives clues about how the Internet fits with the firm’s current advertising, sales promotion, and other marketing communications. The firm. Capital E-Marketing Plan VCs look for a way to get their money and profits out of the venture within a few years: - The golden exit plan is to go public and issue stock in an initial public