1. The E-Marketing Plan

2. Creating an E-Marketing Plan
Why would a company pay so much to design and build its Internet presence ?
To protect the corporate and brand identities
Complexity of designing e-marketing strategies

3. Creating an E-Marketing Plan
An E-Marketing Plan is a company’s blueprint for strategic direction
Ad hoc – Companies develop strategies without the development of an E-Marketing Plan
Example:
75% of e-business will fail due to flaws in planning

4. A Seven Step Marketing Plan
Conduct a situation analysis.
Identify target stakeholders
Set objectives
Design marketing mix strategies to meet objectives
Design action plan
Develop a budget
Develop an evaluation plan

5. Exhibit 8 - 2 Marketing Plan Process

6. Venture Capital E-Marketing Plan
Large Web sites are not profitable ventures, but they are more concerned with establishing their brands, ex: Amazon
Start-Up companies are funded by:
Private funds (family and friends)
Angle Investors
Venture capitalist (VCs)
“I invest in people, not ideas,” Arthur Rock (VC), “If you find good people, if they’re wrong about the product, they’ll make a switch.”

7. Venture Capital E-Marketing Plan
VCs look for plans that show:
the e-business idea is a solid one,
the entrepreneur has some idea of how to run the business
Once the start up business begins to boom, the VC looks for an exit plan, and the stock usually goes public, IPO
The VC gets their money back and looks for another investment

8. Key Success Factors
Key Dangers
§    Make it easy for customers to do business with you.
§    Focus on the end customer for your products and services.
§    Redesign your customer-facing business processes from the end customer’s point of view.
§    Wire your company for profit: Design a comprehensive, evolving electronic business architecture.
§    Foster customer loyalty, the key to profitability in electronic commerce.
§    Don’t completely redesign a business to become an e-business.
§    Don’t suspend good project management rules in the name of e-business.
§    Don’t assume technology can do all the heavy lifting in e-business implementation.
§    Don’t focus solely on current customers for e-business.
§    Stay alert for new competition.
Exhibit Critical Success Factors and Dangers for E-Business Source: Success from Seybold (1998); danger from GartnerGroup (1999)

9. The Existing Marketing Plan
Working with existing information is the best place to start, if you want to follow current positing strategies.

10. Conduct an Environmental Scan
Situation Analysis
Conduct an Environmental Scan
Legal/Political Environment
Taxation, access, copyrights, & encryption
Technological Environment
Communication Infrastructures
Bandwidths, and New browsing devices

11. Conduct an Environmental Scan
Situation Analysis
Conduct an Environmental Scan
USER Trends
Focus on how the net audience has changed over the last six months, last year, etc…
Are there any trends?
Is there any important target segments coming online?
World Economies
Understand overseas economies, also do they have the proper infrastructures to support what we are doing?

12. Situation Analysis Develop a Market Opportunity Analysis
- Includes both demand & supply analysis
Demand side, reviews potential profitability
Supply side, reviews competition, and finds competitive advantages
- SWOT

13. Internal Capability
Examples
Customer interactions
E-commerce, customer service, distribution channels
Production and fulfillment
SCM, production scheduling, inventory management
People
Culture, skills, knowledge management, leadership and commitment to e-business
Technology
ERP systems, legacy applications, networks, Web site, security, IT skills
Core infrastructure
Financial systems, R&D, HR
Exhibit Key Internal Capabilities for E-Business Source: Adapted from Kalakota (1999)

14. Situation Analysis Develop a Market Opportunity Analysis
Market Opportunity Analysis includes both demand and supply analyses.
The demand portion reviews various market segments in terms of potential profit.
The supply analysis review competition in selected segments that are under consideration
The purpose of the supply analysis is to assist in forecasting segment profitability and finding competitive advantages in the online market.

15. Strengths, Weaknesses, Opportunities and Threats
SWOT
Strengths, Weaknesses, Opportunities and Threats
This analysis objectively evaluates the company’s strengths and weaknesses with respect to the environment and the competition

16. Strategic Opportunities
A Key element in setting strategic goals is to take stock of where the company currently is and the level of commitment that it wishes to make to a business.
The lowest level impacts individual business activities such as order processing.
The next level impacts business processes such as customer relationship management
The next level, enterprise is where the firm automates many business processes in a unified system
EB = EC + BI + CRM + SCM + ERP
ERP – the key here is to make sure that the processes work well together in a unified system

17. Exhibit 8 - 5 Level of Commitment to E-Business
Source: adapted from

18. Pure Play Advantages
They are not held to the same standards of profitability as the brick-and-mortar stores
They are held to be smaller and have more agile cultures able to move quickly in response to market fluctuations
The final level is comprised of internet pure plays
Pure plays are companies without brick and mortar presence

19. Exhibit 8 - 6 Menu of Opportunities at Various Levels of Commitment
Activity Level
Business Process Level
Enterprise Level
Online market research
Online purchasing
Brochureware
Content publisher
Online advertising
Online sales promotions
Order processing
Cost reduction using electronic means
Negotiated pricing online
Segmented pricing online
Content sponsorship online
Knowledge management
Customer relationship management (CRM)
Supply chain management (SCM)
E-Commerce: tangible products
Direct selling
Community building online
Affiliate program
Database marketing
E-tailer
Bit vendor
Online exchange
Online brokerage
Metamediary
Infomediary
Virtual mall
Shopping agent
Reverse auction
Online buyer’s coop
Mass-customization tools
Exhibit Menu of Opportunities at Various Levels of Commitment

20. Identify Target Stakeholders
When multiple targets are identified, they should be ranked in order of importance so resources can be allocated accordingly
Each market should be well profiled by its characteristics, behavior and desires
Firms must understand the value proposition for each market.

21. Set Objectives
Use carefully worded objectives that flow from plan analyses that have a task, contain a specific measurement device, and has a time frame for accomplishment.

22. Design Marketing Mix Strategies to Meet the Objectives
Strategic justification – shows how the strategy fits with the firms overall mission and objectives
Operational justification – identifies and quantifies the specific process improvements that will result from the strategy
Technical justification – shows how technology will fit and provide synergy with current IT capabilities
Financial justification – examines cost/benefit analysis

23. Exhibit 8 - 7 Selected E-Business Models Are Also Marketing Strategies
Marketing Mix Component
Chapter
Business Model
Product 4
Digital value through new products
Price
Cost reduction using E-marketing
Negotiation
Segmented pricing
Distribution 5
Content sponsorship
Direct selling
Infomediary
Intermediaries
Broker: Online exchange
Online auction
Agent: Manufacturer’s agent
Affiliate program
Metamediary
Virtual mall
Shopping agent
Reverse auction
Buyer cooperative
E-tailer bit vendor
Tangible products
Marketing Communication 6
Content publishing
Community building
Online advertising
Online sales promotion
Relationship Marketing 7
CRM
Exhibit Selected E-Business Models Are Also Marketing Strategies

24. Action Plan Project Scope Site Development Site Promotion
An action plan will decide which strategies are best to promote the business or company. Having decided that an Internet presence is essential the following considerations are necessary:
Project Scope
Site Development
Site Promotion
Site Maintenance

25. Web Site Example: Project Scope
To decide the level of Internet and e-commerce commitment that is both beneficial, cost effective and advantageous to the company.
To evaluate the need for contact between stakeholders and staff, and what staffing is necessary to implement such a program.

26. Site Development
Build, Buy or Rent, the Following Considerations Apply:
Outsourcing – speeds completion of the project
Personnel Cost Savings
Faster Loading Site
User Friendly Product
More Professional Graphics & Information
Outsourcers are aware of Copyright Rules
First Impression is Paramount

27. Exhibit 8 - 8 Top 15 U.S. Interactive Advertising Agencies
 Agency (Affiliation)
 Headquarters
1999 Projected Revenue (in thousands)
 % Increase over 1998   
1999 Employees 1
Sapient 1
Cambridge, MA
276,844
67.9
2,011 2
iXL, Atlanta 1
Atlanta
*214,000
230.8
*1,700 3
USWeb/CKS 1, 2
San Francisco
*170,000
86.8
*1,050 4
Razorfish (Omnicom) 1
New York
150,000
983.6
1,300 5
Digitas 2
Boston
*135,000
237.5
700 6
TMP Worldwide 1, 2
*125,000
149.2
*350 7
c2o Interactive Architects (EDS) 1
Dallas
125,000
177.8
350 8
Euro RSCG Worldwide Interaction (Havas) 1
120,900
54.0
793 9
AppNet 1
Bethesda, MD
110,000
521.5
1,000 10
Grey New Technologies 1
106,000
41.3
850 11
OgilvyInteractive 1 (WPP)
100,000
66.7
650 12
Agency.com1 (Omnicom)
*100,000
278.0 13
Luminant Worldwide (Y&R)
95,883 NA
800 14
Organic (Omnicom)
*80,000
188.8
681 15
Xceed1
74,000
19.4
450
Exhibit Top 15 U.S. Interactive Advertising Agencies
Source: Adapted from AdweekOnline (

28. Site Promotion Links to Site Promotion & Search Engines:
Register Site with Search Engines
Use Metatags, Keywords and HTML tags
List Site with Appropriate Directories
Utilize Electronic Press Releases
Link to Complimentary Web Sites
Incorporate Web Site Address in all Media
Consider Banner Advertising
Consider Hiring an Outside Firm to Promote Web Site
Links to Site Promotion & Search Engines:

29. Exhibit 8 - 9 Adjacency (Sapient) Builds and Promotes Web Sites for Clients
Source:

30. Site Maintenance Decide How Often to Update Site
Decide Whether to Outsource or Update in House
Evaluate the need for Human Resource for Web Site Maintenance

31. Budgeting Evaluate the cost/benefits analysis &
Identify Potential Revenue Streams:
E-Commerce – Do we sell on-line?
Content Sponsorship – Banners, Buttons, Sponsorships
Intermediary Fees – Broker and Agent Fees

32. Revenue Streams Initial funds to support a Web site come from:
Investors
Loans
Firm’s operating budget
Revenue streams that produce Internet profits come mainly from:
Direct sales
Advertising sales
Other fees

33. Cost Savings By Selling and Marketing On-line
Eliminating elements of the traditional distribution chain
Increases possibilities of greater revenue
Saves on traditional marketing costs (printing, postage)
Increases target market to world-wide audience

34. Intangible Benefits
The industry is developing exponentially creating new marketing opportunities, although they may be hard to measure
Goodwill
Brand Equity
Audience Measurement
Public Relations
Customer Satisfaction

35. Cost/Benefit Analysis Analyze the cost of e-marketing versus the benefits
Costs
Revenue increases
Cost decreases
Intangible benefits
Goodwill
Brand/Image Building
Relationship Building
ISP Costs
Hardware and Software Costs
Design Costs
Maintenance Costs

36. Evaluation Plan Monitor and Track Site Usage
Cognitive
Measure unique visits and impressions
Attitudinal
Survey customers for brand satisfaction
objective: CRM, firm would use AOV
(average order value) and LTV (lifetime
customer value)
Transactive
Measure purchases, site traffic, previous
paths and click-through rate

37. The End