E-Marketing, 3rd editionJudy Strauss, Adel I. El-Ansary, and Raymond Frost doc

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
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 venture’s 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 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

A Six-Step E-Marketing Plan

Step

Tasks

Situation analysis 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.

Link e-business with
e-marketing strategy
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.

Objectives Identify general goals.
Select target specific goals.

Implementation plan 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.

Budget Forecast revenues.
Evaluate costs to reach goals.

Evaluation plan Identify appropriate performance metrics.
Exhibit 3 - 1 Marketing Plan Process
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
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


Hispanic markets growing and
untapped in our industry.


Save postage costs through e-mail
marketing.
Pending security law means costly software
upgrades.
Competitor X is aggressively using e-
commerce.
Strengths Weaknesses
1.

Strong customer service department.
2.

Excellent Web site and database
system.
1.

Low tech corporate culture
2.

Seasonal business: peak is summer
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
 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.
 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.
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
Step 2—Link 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 firm’s e-
business 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 4P’s 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).
Segmentation
Targeting
Value
Differentiation
CRM/PRM
Positioning
Communication
Distribution

Offer
E-Marketing
Strategy
Tier 2
tasks
Tier 1
tasks
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 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, e-
marketing initiatives, …
- Identify future industry changes.