Transcript elc 310 day 4

ELC 310
DAY 4
Agenda
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Assignment 1 Due
Assignment #2 coming soon
Questions?
Finish Discussion on the Marketing Plan
Begin Discussion on Leveraging
Technology
eMarketing Plans due October 22 (6
weeks from now)
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
A Six-Step E-Marketing Plan
Step
1 Situation analysis
2 Link e-business with emarketing strategy
Tasks
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
metrics.
Identify revenue streams suggested by e-business models
Tier 1
Perform Marketing Opportunity Analysis to identify target
stakeholders.
3 Objectives
4 Implementation plan
5 Budget
6 Evaluation plan
Specify brand differentiation variables.
Select positioning strategy.
Tier 2
Design the offer, value, distribution, communication, and
market/partner relationship management strategies.
Identify general goals.
Select target specific goals.
Design e-marketing mix tactics.
 product/service offering
 pricing/valuation
 distribution/supply chain
 integrated communication mix
Design relationship management tactics.
Design information gathering tactics.
Design organizational structures for implementing the plan.
Forecast revenues.
Evaluate costs to reach goals.
Identify appropriate performance metrics.
Exhibit 3 - 1 Marketing Plan Process
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 1—Situation Analysis
Planning for e-marketing does not mean starting from scratch but working
with existing business, e-business, and marketing plans is an excellent
place to start.
Opportunities
Threats
Pending security law means costly software
 Hispanic markets growing and
upgrades.
untapped in our industry.
Competitor X is aggressively using e Save postage costs through e-mail
commerce.
marketing.
Strengths
Weaknesses
1. Strong customer service department.
1. Low tech corporate culture
2. Excellent Web site and database
2. Seasonal business: peak is summer
system.
months.
E-business Goal: Initiate e-commerce in within one year.
Metric: Generate $500,000 in revenues from e-commerce during the first year.
Exhibit 3 - 1 SWOT, Objective, and Metric Example from E-Business Plan
Step 1—Situation Analysis
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The organizational e-business plan: SWOT analysis => e-business
strategy.
The marketing plan: gathers information about the firm’s products, the
markets currently served, and so forth.
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The distribution plan: identifies areas where the products are currently sold
and suggests geographic gaps that might be 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 and brand positioning in the marketplace: Internet planners must
decide how closely Web site content and promotion will follow current
positioning strategies.
The marketer moves to strategy formulation.
Step 2—Link E-Business with
E-Marketing Strategy
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Marketers need to:
1.
Review the marketing and e-business plans,
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Conduct strategic planning to help achieve the firm’s e-business goals
+ define potential revenue streams,
3.
Create supporting e-marketing strategy for the e-business goals:
a) A Tier one strategy:
marketers design segmentation, targeting, differentiation, and positioning
strategies,
b) B Tier two strategy:
deals with the 4P’s and relationship management by creating strategies
around the offer (product), value (pricing), distribution (place), and
communication (promotion),
4.
Further, marketers design
strategies (CRM/PRM).
customer
and
partner
relationship
Differentiation
Tier 1
tasks
Tier 2
tasks
Segmentation
Positioning
Targeting
E-Marketing
Strategy
Offer
CRM/PRM
Communication
Value
Distribution
Exhibit 3 - 1 Formulating E-Marketing Strategy in Two Tiers
Tier One E-Marketing Strategic
Planning: Segmenting & Targeting
Market opportunity analysis (MOA):
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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.
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Allows the company to select its target market and understand its
characteristics, behavior, and desires in the firm’s product
category.
Tier One E-Marketing Strategic
Planning: Segmenting & Targeting
Tools:
 Traditional segmentation analyses.
 Analyzes of customer bases using cookies, database
analyses, and other techniques
 Supply analysis: forecasts segment profitability + finds
competitive advantages
 Study of competition to find the company own
performance advantages.: strengths and weaknesses, emarketing initiatives,
 Identify future industry changes.
Tier One E-Marketing Strategic Planning:
Identifying brand differentiation variables
and positioning strategies
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The understanding of the competition + the target(s)
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Differentiation of the products to provide benefits perceived as
important by the target.
The positioning statement: the desired image for the
brand relative to the competition.
Tier Two E-Marketing Strategic
Planning
The two Tiers are elaborated in an interative 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
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The organization can:
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Sell merchandise, services, or advertising on the Web site,
Adopt a e-business model such as online 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.
Value
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There are two online pricing trends are:
 Dynamic pricing—this strategy applies different price
levels for different customers or situations. The Internet
allows firms to price items automatically and “on the fly”
while users view pages,
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Online bidding—this presents a way to optimize
inventory management.
E.g. Priceline.com, eBay.com
Distribution Strategies
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Many firms use the Internet to distribute products or
create efficiencies among supply chain members in the
distribution channel.
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Direct marketing—Many firms sell directly to
customers, by-passing 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
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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 to:
- Communicate with their target markets and business
partners
- Build brand images
- Create awareness of new products
- Position products using the Web and e-mail.
Relationship Management
Strategies
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E-marketing communication strategies help build relationships
with a firm’s partners, supply chain members, or customers
using:
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Customer relationship management (CRM) software to retain
customers and increase average order values and lifetime value,
Partner relationship management (PRM) software to integrate
customer communication and purchase behavior into a
comprehensive database,
Extranets—two or more proprietary networks linked for better
communication and more efficient transactions among firms (PRM).
Step 3— Formulate Objectives
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In general, an objective in an e-marketing plan takes the
form:
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Task (what is to be accomplished),
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Measurable quantity (how much),
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Time frame (by when).
Typical E-Marketing Objectives
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Most e-marketing plans aim to accomplish multiple
objectives such as:
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Increase market share,
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Increase sales revenue,
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Reduce costs,
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Achieve branding goals,
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Improve databases,
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Achieve customer relationship management goals,
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Improve supply chain management.
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 3 - 1 E-Marketing Objective-Strategy Matrix
Source: Adapted from Embellix eMarketing Suite
Step 4 — Design Implementation
Plan to Meet the Objectives
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Select:
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The marketing mix (4 Ps),
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Relationship management tactics,
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Other tactics to achieve the plan objectives.
Devise detailed plans for implementation.
Check the right marketing organization is in place for
implementation.
Step 4 — Design Implementation
Plan to Meet the Objectives
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Information technologies are especially adept at
automating these processes, this is why the
information gathering tactics are important:
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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.
Step 5 — Budgeting
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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)
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Determine whether the effort is worthwhile.
During plan implementation, marketers will closely
monitor actual revenues and costs
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To monitor of results are on track for accomplishing the
objectives.
Revenue Forecast
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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.
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This number affects the amount of revenue a firm can
expect to generate from its site.
Revenue streams:
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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
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Costs for employees, hardware, software, programming, and more.
Some traditional marketing costs may creep into the e-marketing
budget
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The cost of a Web site can range from $5000 to $50 million.
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Few of the costs site developers incur:
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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
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Other costs site developers incur:
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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.
Step 6 — Evaluation Plan
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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 …
E-Marketing, 3rd edition
Judy Strauss, Adel I. El-Ansary, and Raymond Frost
Chapter 4: Leveraging Technology
© Prentice Hall 2003
Overview
The Marriage of Marketing
&Technology
Product Technologies
Building a Web Site
HTML Forms
Java
Dynamic HTML (DHTML)
XHTML
XML
Multimedia
Database Marketing
Computer Viruses
Denial of Service Attacks
Price Technologies
Distribution Technologies
Bandwidth and Market
Opportunities
Content Filtering
Transaction Security
IMC Technologies
Proxy Servers
How Search Engines Work
Log Files and Cookies
Rotating and Targeted Ad
Banners
Relationship Marketing Technologies
The Marriage of Marketing and
Technology
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Marketing managers need to
understand the capabilities of new
media to develop and implement an
effective marketing plan.
E.g. AutoTrader.com
Overview
The Marriage of Marketing
&Technology
Product Technologies
Building a Web Site
HTML Forms
Java
Dynamic HTML (DHTML)
XHTML
XML
Multimedia
Database Marketing
Computer Viruses
Denial of Service Attacks
Price Technologies
Distribution Technologies
Bandwidth and Market
Opportunities
Content Filtering
Transaction Security
IMC Technologies
Proxy Servers
How Search Engines Work
Log Files and Cookies
Rotating and Targeted Ad
Banners
Relationship Marketing Technologies
Product Technologies
E-marketers can use a wide variety of
technologies to support their product
strategies.
Building a Web Site
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Building and publishing Web pages = greatly simplified.
HyperText Markup Language (HTML): language
originally used to construct all Web pages.
Today other languages have been added to support
interactive Web pages.
These languages creates a computer program that runs
 On the Web server = slow response times,
 On the user's browser = instantaneous response.
HTML Forms
= Text boxes, check boxes, radio buttons, drop-down lists.
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When completing a survey or ordering online, the customer
fills out an HTML form.
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Creating the form is easy.
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Processing the information is more difficult.
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The processing is performed on the server by a separate
program:
 Common Gateway Interface (CGI) scripts for Unix
operating system,
 Active Server Pages (ASP) for servers running Microsoft.
Java
= A general-purpose computer language developed
by Sun Microsystems that can be used to develop
interactive Web sites.
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Fast: Programs run very quickly on the user’s
computer system.
Flexible: Programs support animation, streaming
media, 3D visualization, or almost any other task.
Java
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Safe: Programs run in a protected memory space
where they cannot infect or otherwise damage the
user’s computer system.
Difficult to program: A Java Development Kit (JDK)
can simplify the process but Java is a language for
professional programmers.
Dynamic HTML: Enhanced form of HTML providing
many of the interactive functions of java without
the heavy-duty programming.
Dynamic HTML (DHTML)
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DHTML encompasses a range of enhancements to
the HTML standard to make it:
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more interactive,
more capable of multimedia,
better suited to professional page layout.
These enhancements include:
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JavaScript,
Cascading style sheets (CSS),
plug-ins,
ActiveX.
JavaScript
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Name: has nothing to do with Java+ was chosen because
of the cachet of the Java language.
Origin: It was developed by Netscape and then became an
industry standard.
Use:
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Create the fancy buttons and rollover effects,
Check user input for errors and issue warning messages,
Detect the user’s browser version and monitor size and send
a version of the Web page optimized for the user’s machine,
Create calculators, clocks, games, and many other
applications.
ActiveX
= A competitor to Java but has not achieved nearly the same
market share.
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It works only with the Windows operating system:
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Developers programming in ActiveX risk alienating a
portion of the user base,
ActiveX programs can access the file system on the
user’s computer = opens up the possibility of privacy
abuse.
Plug-Ins
= Small programs that must be downloaded and installed on the user’s
computer.
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Use:
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Play multimedia content encoded in a specific format,
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Create content with relatively little effort.
Safety:
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For fear of viruses, users are disinclined to download and install
software,
Some plug-ins are so prevalent that they have a large installed base
of users and are safe.
Plug-Ins
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The best known plug-ins:
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RealPlayer: Plays streaming audio and video over lowbandwidth connections,
Acrobat: Allows professional page layouts to be saved
with the possibility lock the document so it cannot be
altered,
Flash: Plays animations including charts, graphics,
sounds, scrolling lists, tickers, and movie clips.
Cascading Style Sheets (CSS)
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Assist with precise formatting of text and graphics on the
Web page.
Enable relatively painless sitewide updates.
Allow the separation of a document’s content from its
presentation in separate files.
Have to be used with caution because some older browser
versions cannot support them:
Solution: create multiple versions of each page, then send
the appropriate one to the user.
XHTML
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Goals:
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Bring more uniformity to the HTML language by
requiring every tag to have a matching end tag,
Increase the separation between document content and
presentation (CSS).
XHTML can be seen as an intermediate step toward the
real direction that the Web may be heading = XML.
XML
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XML completes the separation of document content and
presentation opening up a significant business application:
Web enabling business databases + the exchange of
information from those databases:
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Consumers can request online account information, product
availability, which are sent from database to Web page
instantaneously on demand,
Businesses can easily exchange data with their supply chain
partners, gaining a significant competitive advantage.
XML
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Drawbacks:
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Lack of support for the standard by Netscape (pages have
unpredictable displays on a Netscape browser),
It is relatively difficult to program and only accessible to
professional programmers.
Developers have three options:
1.
2.
3.
Learn XML and become professional programmers,
Use an XML authoring tool such as Microsoft Word to
automatically generate XML,
Ignore the standard in the same way that many developers
ignored Java.
Multimedia
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Challenge: Deliver multimedia content over the Web requiring
high bandwidth to slow home connections.
Solutions:
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Speed up the home Internet connection using a high-bandwidth wired or
wireless connection,
Compress the multimedia content into smaller packets of information,
RealNetworks: compression audio (RealAudio) and video (RealVideo),
MP3: compression technology for music (1/10th of original size,
Stream the multimedia so that the user can play a piece of it while the rest
downloads,
Distribute multiple copies of the multimedia content around the Internet so
that it is closer to the end users and delays are avoided.
Database Marketing
= Utilize relational databases to store tables of
information:
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Can be mined for information about clients.
Can be used to generate promotional campaigns.
A collection of tables containing information
about a common subject.
Relational databases such as Oracle and DB2
utilize a very powerful query language called
SQL.
Database Marketing
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E-marketers use the client and interest files to
target by demographics or psychographics.
Structured Query Language (SQL): used to extract
information from large databases.
How does the user data get it into the database?
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Explicit method: User fills out a short survey during the
registration process at a Web site,
Implicit method: Study of the user ’s pattern of
frequenting pages on a site.
Computer Viruses
= Intrusive pieces of computer code that secretly attach to
existing software, reproducing themselves and wreaking
havoc with data.
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They can spread throughout a computer network.
Problem: Reinforce consumer perceptions that the Internet
is not secure.
Computer Viruses
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4 common types of viruses are:
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Macro viruses: attached to data files and infect Microsoft
Word or Excel when users open the infected data file,
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Worms: replicate rapidly, eating up memory,
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Trojan Horses: are activated at a certain date or event,
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Boot viruses: reside on floppy disks and destroy
operating systems when users mistakenly boot the
computer with a disk inserted.
Computer Viruses
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What can e-marketers do?
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The best place to stop a computer virus is before it reaches the end
user.
All e-mail messages pass through a mail server that stores the
messages on a disk drive in users’ mailboxes:
 Software installed on the mail server can scan all incoming
messages for known viruses and destroy them.
Anti-viral software can also be installed on each individual computer
such as McAfee Anti-Virus, or the Symantec's Norton AntiVirus.
Denial of Service Attacks
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Occurs when a hacker floods a computer system with
millions of requests for information and effectively exceeds
its ability to respond.
Remedies:
 Distribute multiple copies of a Web site around the
country in the hope that all sites will not be attacked
simultaneously,
 Infrastructure companies are also working together to
develop procedures for early detection and
neutralization of attacks.
Price Technologies
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Shopping agents are a key technology that e-marketers
need to understand when planning pricing strategies.
A shopping agent:
 Helps consumers shop by compiling all the information
they need to complete a purchase,
 Knows which stores to visit, provides accurate product
and price information,
 Helps buyers compare product features and prices,
negotiates specials on their behalf,
 Completes the transaction with the click of a button,
 Uses a technology called parallel pull.
Price Technologies
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The merchants’ benefits: The agents attract customers to
their sites.
The agents’ benefits: Sell preferred placement and
advertising inventory as well as by collecting referral fees.
Easy price-shop + little product or merchant differentiation
perception
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Commodity markets with all prices reaching similar levels.
BUT most consumers are brand sensitive about their
merchants:
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Look at the price sorted results for a familiar merchant name.
Price Technologies
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For whom is the agent really working?
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The buyer: the agents do not charge vendors a fee for
listing such as PriceSCAN.
The vendors: certain agents may charge a fee for listing
and additional fees for preferred placement in the listings
but the consumer is usually able to sort the listings by
price.
One weakness: vendor ‘s selectivity is not prominently
mentioned on the site.