E-Marketing plan

Prof. Luca Buccoliero

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 1Situation Analysis
Step 2Link E-Business with E-Marketing Strategy
Step 3 Formulate Objectives
Step 4Design Implementation Plan to Meet the
Objectives
Step 5Budgeting
Step 6Evaluation 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 1Situation Analysis
Step 2Link E-Business with E-Marketing Strategy
Step 3 Formulate Objectives
Step 4Design Implementation Plan to Meet the
Objectives
Step 5Budgeting
Step 6Evaluation Plan

Creating an E-Marketing Plan

E-marketing plan: It is a guiding, dynamic document that links

the firms 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.

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 1Situation Analysis
Step 2Link E-Business with E-Marketing Strategy
Step 3 Formulate Objectives
Step 4Design Implementation Plan to Meet the
Objectives
Step 5Budgeting
Step 6Evaluation 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 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
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 1Situation Analysis
Step 2Link E-Business with E-Marketing Strategy
Step 3 Formulate Objectives
Step 4Design Implementation Plan to Meet the
Objectives
Step 5Budgeting
Step 6Evaluation Plan

The Venture Capital E-Marketing

Plan

Small to mid-sized firms and entrepreneurs with start-up ideas

usually begin with a napkin plan without going through the entire
traditional marketing planning process.

BUT as the company grows and needs capital, it has to put together
a comprehensive e-marketing plan.

Where does an entrepreneur go for capital?

- Sometimes bank loans,
- Most of the time, it is equity financed,
- 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 E-Marketing

Plan

9 questions that every business plan should

answer:
1. Who is the new ventures customer?
2. How does the customer make decisions about
buying this product or service?
3. To what degree is the product or service a
compelling purchase for the customer?
4. How will the product or service be priced?

The Venture Capital E-Marketing

Plan

9 questions that every business plan should

answer:
5. How will the venture reach all the identified
customer segments?
6. How much does it cost (in time and resources)
to acquire a customer?
7. How much does it cost to produce and deliver
the product or service?
8. How much does it cost to support a customer?
9. 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

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 E-Marketing Plan
Step 1Situation Analysis
Step 2Link E-Business with E-Marketing Strategy
Step 3 Formulate Objectives
Step 4Design Implementation Plan to Meet the
Objectives
Step 5Budgeting
Step 6Evaluation Plan

A Six-Step E-Marketing Plan

Step

1 Situation analysis

2 Link e-business with

e-marketing strategy

3 Objectives
4 Implementation plan

5 Budget
6 Evaluation plan

Tasks

Review the firms 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 firms 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.
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.

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 1Situation Analysis
Step 2Link E-Business with E-Marketing Strategy
Step 3 Formulate Objectives
Step 4Design Implementation Plan to Meet the
Objectives
Step 5Budgeting
Step 6Evaluation Plan

Step 1Situation 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
1. Hispanic markets growing and
1. Pending security law means
untapped in our industry.
costly software upgrades.
2. Save postage costs through e2. Competitor X is aggressively
mail marketing.
using e-commerce.
Strengths
Weaknesses
1. Strong customer service
1. Low tech corporate culture
department.
2. Seasonal business: peak is
2. Excellent Web site and
summer months.
database system.
E-business Goal: Initiate e-commerce in within one year.
Metric: Generate $500,000 in revenues from e-commerce during the first year.

Step 1Situation Analysis

The organizational e-business plan: SWOT analysis => e-business strategy.

The marketing plan: gathers information about the firms 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 e-commerce.

Promotion plan information: gives clues about how the Internet fits with the firms
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.

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 1Situation Analysis
Step 2Link E-Business with E-Marketing
Strategy
Step 3 Formulate Objectives
Step 4Design Implementation Plan to Meet the
Objectives
Step 5Budgeting
Step 6Evaluation Plan

Step 2Link E-Business with

E-Marketing Strategy

Marketers need to:

1 Review the marketing and e-business plans,
2 Conduct a strategic planning to help achieve the firms ebusiness goals + define potential revenue streams,
3 Create supporting e-marketing strategy for the e-business goals:
A Tier one strategy: marketers design segmentation, targeting,
differentiation, and positioning strategies,
B Tier two strategy deals with the 4Ps and relationship management
by creating strategies around the offer (product), value (pricing),
distribution (place), and communication (promotion),

4 Further, marketers design customer and partner relationship

strategies (CRM/PRM).

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):

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 to select its target market and understand its
characteristics, behavior, and desires in the firms 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

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 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 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.

The Offer: Product Strategies

There are two online pricing trends are:

Dynamic pricingthis 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,
Online biddingthis presents a way to optimize
inventory management.

E.g. Priceline.com, eBay.com

Distribution Strategies

Many firms use the Internet to distribute products or

create efficiencies among supply chain members in the
distribution channel.
Direct marketingMany firms sell directly to
customers, by-passing intermediaries in the traditional
channel for some sales.
Agent e-business modelsFirms 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 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

E-marketing communication strategies help build relationships with

a firms partners, supply chain members, or customers using:
- 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).

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 1Situation Analysis
Step 2Link E-Business with E-Marketing Strategy
Step 3 Formulate Objectives
Step 4Design Implementation Plan to Meet the
Objectives
Step 5Budgeting
Step 6Evaluation Plan

Step 3 Formulate Objectives

In general, an objective in an e-marketing plan takes the

form:

Task (what is to be accomplished),

Measurable quantity (how much),
Time frame (by when).

Typical E-Marketing Objectives

Most e-marketing plans aim to accomplish multiple

objectives such as:
Increase market share,
Increase sales revenue,
Reduce costs,
Achieve branding goals,
Improve databases,
Achieve customer relationship management goals,
Improve supply chain management.

E-Marketing Objective-Strategy
Matrix
Objective-strategy matrix presents the firms 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

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 1Situation Analysis
Step 2Link E-Business with E-Marketing Strategy
Step 3 Formulate Objectives
Step 4Design Implementation Plan to Meet the
Objectives
Step 5Budgeting
Step 6Evaluation Plan

Step 4 Design Implementation

Plan to Meet the Objectives

Select:
- The marketing mix (4 Ps),
- Relationship management tactics,
- 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

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 1Situation Analysis
Step 2Link E-Business with E-Marketing Strategy
Step 3 Formulate Objectives
Step 4Design Implementation Plan to Meet the
Objectives
Step 5Budgeting
Step 6Evaluation Plan

Step 5 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 firms 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 1Situation Analysis
Step 2Link E-Business with E-Marketing Strategy
Step 3 Formulate Objectives
Step 4Design Implementation Plan to Meet the
Objectives
Step 5Budgeting
Step 6Evaluation Plan

Step 6 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

Discussion Questions
1. If you had money to invest, what would you look for
in a venture capital e-marketing plan?
2. What kinds of questions should a firm ask in
developing an e-marketing plan to serve customers in
current markets through an online channel?
3. 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?
4. 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?