chapter # 08 (e-marketing)

Figure1 The e-marketing plan in the context of other plans

Slide 8.*Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition Marketing Insights Ltd 2007

E-marketing definedAchieving marketing objectives through use of electronic communications technologyAnother similar term is digital marketing


E-marketing planningA e-marketing plan is needed to detail the specific objectives of the e-business strategy through marketing activities

Figure 8.2 SOSTAC a generic framework for e-marketing planning


SOSTACDeveloped by Paul Smith (1999)Summarizes the different stages that should be involved in a marketing strategy from strategy development to implementation


Is a separate e-marketing plan required?Customer demand will be underestimatedExisting and start-up competitors will gain market shareDuplication of resourcesInsufficient resources will be devoted to planningInsufficient customer data are collectedEfficiencies available through online marketing will be missed

Figure 8.4 Inputs to the e-marketing plan from situation analysis


Situation AnalysisTo understand the current and future environment in which the company operatesInvolves consideration of all of these factors and will form the basis for defining objectives, strategies and tactics


Demand analysisWhat percentage of customer businesses have access to the Internet?What percentage of members of the buying unit in these businesses have access to the Internet?What percentage of customers are prepared to purchase your particular product online?What percentage of customers with access to the Internet are not prepared to purchase online, but are influenced by web-based information to buy products offline?What are the barriers to adoption amongst customers and how can we encourage adoption?

Figure 8.5 Customer demand analysis for the car market


Competitor AnalysisThe monitoring of competitor use of e-commerce to acquire and retain customer Companies should review:Well-known competitorsWell-known international competitorsNew Internet companies locally and worldwide


Benchmarking solutionsFinancial performanceMarketplace performance market share and sales trends and significantly the proportion of sales achieved through the Internet. Business and revenue models do these differ from other marketplace players?Marketing communications techniques is the customer value proposition of the site clear? Does the site support all stages of the buying decision from customers who are unfamiliar with the company through to existing customers, are special promotions used on a monthly or periodic basic? Beyond the competitors site, how do they make use of intermediary sites to promote and deliver their services?Services offered what is offered beyond brochureware? Is online purchase possible, what is the level of online customer support and how much technical information is available?Implementation of services these are the practical features of site design such as aesthetics, ease of use, personalization, navigation and speed.The 7Ps.


Intermediary analysisIdentifying relevant intermediaries for a particular marketplaceIdentify strategic partners when executing an online advertising campaignsTo consider the way the marketplace is operating


OBJECTIVE SETTING


SMART e-marketing objectivesSpecificMeasurableAchievableRealisticTime-constrained

Figure 8.6 Assessment of the future online promotion contribution and online revenue for The B2B Company, for Product A, Europe


The Online Revenue ContributionA measure of extent to which a companys online presence directly impacts on the sales revenue of the organization


STRATEGY


De Kare Silvers ES test1.Product characteristics. Does the product need to be physically tried or touched before it is bought? 2.Familiarity and confidence. Considers the degree the consumer recognizes and trusts the product and brand.3.Consumer attributes. These shape the buyers behaviour are they amenable to online purchases in terms of access to the technology skills available and do they no longer wish to shop for a product in a traditional retail environment?

Figure 8.8 Stages in target marketing strategy development


Target market strategiesEvaluation and selection of appropriate segments and the development of appropriate offers5 questions when developing strategy:Who are our customers?How are their needs changing?Which do we target?How can we add value?How do we become first choice?


Characteristics of new-media marketing communicationsInteractivityIntelligenceIndividualizationIntegrationIndustry restructuringIndependence of location

Figure 8.9 Summary of communication models for (a) traditional media, (b) new media


Intelligence

Figure 8.10 Summary of degree of individualization for (a) traditional media (same message), (b) new media (unique messages and more information exchange between customers)


Individualization

Figure 8.11 Channels requiring integration as part of integrated e-marketing strategy


Integration


www.dell.com.my


Examples of integrated communication toolsThe internet can be used as a direct-response tool enabling customers to respond to offers and promotions publicized in other mediaThe web site can have a direct response or callback facility built into it.The Internet can be used to support the buying decision even if the purchase does not occur via web site.

Figure 8.12 Channel integration required for e-marketing and mixed-mode buying


TACTICS


Online value propositionA clear differentiation of the proposition from competitors based on product features or service quality.Target market segment(s) that the proposition will appeal to.How the proposition will be communicated to site visitors and in all marketing communications. Developing a tag line can help this.How the proposition is delivered across different parts of the buying processHow the proposition will be delivered and supported by resources is the proposition genuine? Will resources be internal or external?


Example OVPsCompare. Buy. Save. Kelkoo (www.kelkoo.com) Earths biggest selection. Amazon (www.amazon.com)Search the largest inventory of cars and trucks on the Internet. More than 1.5 million listings, updated daily (www.autotrader.com)The Citibank site design (www.citibank.com) uses a range of techniques to illustrate its core proposition and OVP. The main messages are:Welcome to Citibank: The one-stop solution for all your financial needs.Look for a product or service; Learn about a financial product; Find a location.


Issues with varying the mix onlineDo we vary the mix online or replicate offline?Is the offer clear brand proposition, online offerIs online differentiation defined?Is online differentiation communicated?Key online mix variablesProductPricePlacePromotionService: People, Process, Physical evidence

Figure 8.13 The elements of the marketing mixThe Marketing Mix


Product Extend range (Tesco)Narrow range (WH Smith iDTV)Online-only products (banks)Develop new brand (Egg)Migrate existing brand (HSBC)Partner with online brand (Waterstones and Amazon).


Product


PriceDifferential pricing:Reduce online prices due to price transparency and competition (easyJet)Maintain price to avoid cannibalisation of offline sales (Dixon)New pricing options (software, music):RentalPay per useReverse auctions (B2B)Dynamic pricing (Concert tickets).


Implications for priceIncreased price transparency Downward pressure on priceNew pricing approachesAlternative pricing structure or policies


PlacePlace = avoiding channel conflictsDisintermediation sell direct Reintermediation partner with new intermediariesCountermediation:Form new intermediariesPartner with existing intermediariesDistance from intermediaries. (Abbey National)


Implications on placePlace of purchaseNew channel structuresChannel conflictsVirtual organizations


PromotionSelective use of new online tools for different stages of the buying process and customer lifecycleOnline only campaigns Integrated campaigns incorporating online tools into communications mix.


ServicePeopleAutomate use web self-service, offer customer choiceProcessChange process for service contact strategiesPhysical evidenceSite design differentiate or support brandFulfillment quality.



BrandingMalcolm McDonald in their classic 1992 book, Creating Powerful Brands as an identifiable product or service augmented in such a way that the buyer or user perceives relevant unique added values which match their needs most closely. Furthermore, its success results from being able to sustain these added values in the face of competition.


Options for changing brand identity onlineTransfer traditional brand onlineExtend traditional brandPartner with existing digital brandCreate a new digital brand

Figure 8.15 Percent of marketing communications budget spent on e-communications (n = 76)Source: E-consultancy (2005)

Figure 8.16 Changes to brand perception and behaviour as a result of using the Internet for researchSource: BrandNewWorld: AOL UK/Anne Molen (Cranfield School of Management)/Henley Centre, 2004

Figure 8.17 The influence of brand knowledge on purchase. Matrix for question I will buy a product if Source: BrandNewWorld: AOL UK/Anne Molen (Cranfield School of Management)/Henley Centre, 2004


ActionsWhat level of investment in the Internet channel is sufficient to deliver services?What training of staff is required?What new responsibilities are required for effective Internet marketing?Are changes in organizational restructuring required?What activities are involved in creating and maintaining the web site?


ControlConduct marketing research Analysis of web-server log files Intranets can be used to share information

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chapter # 08 (e-marketing)

Documents

emarketing planningslide

edition marketing insights

marketing strategy

online marketing

marketing activitiesfigure

separate emarketing

ebusiness strategy

ecommerce management