E Marketing strategy

A good e-marketing strategy is the most important aspect for the success of any kind
of business. This article will give you a fundamental understanding about an e-
business marketing strategy and an e-marketing plan.

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There are many aspects that lead to the success of any business in the industry.
Marketing is one such significant aspect that makes a business grow. Nowadays,
due to the trend of Internet shopping, companies are adopting marketing strategies,
according to how potential consumers use the Internet. Let us know more about an
e-marketing strategy.

E-Marketing Strategy

In general terms, an e-marketing strategy consists of the steps taken and procedures
followed for marketing a brand through the web. The center of attraction in any e-
marketing strategy is the website of the company to which Internet users are to be
attracted for increasing sales. But firstly, the company's website needs to be in a
proper design, format, attractive, and one that will have a good impression on
prospective buyers.

Read more on:

 Internet Marketing Strategy

 Best Internet Marketing Strategies
 Internet Marketing and Advertising

Components of a Good Internet Marketing Strategy

Search Engine Optimization

A study conducted shows that around 90% of Americans use the Internet daily, with
over 2/3rd of purchases being researched on the Internet. Search Engine
Optimization (SEO) is a procedure that relates to attracting Internet traffic to your
website as much as possible. SEO is crucial for online marketing success of your
business. It includes optimizing your website in such a way that your site would be
ranked on the initial pages of the search, so that the web users can visit your website
for the contents they are in search of. This is done using keyword phrases that the
users generally put in the Internet search engines for searching a particular product
or service.

Email Marketing Strategy

Another important component of an effective e-marketing strategy is email marketing
which is all about sending information of the product and services to the potential
customers using email. This is a proven effective method of using online marketing

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as an efficient tool for business generation. It is also a very good business marketing
technique for building good business relations with potential customers, as well as
prospective clients.

Online Advertising
Online advertising is a marketing method, that has a very substantial Return On
Investment (ROI) value. It consists of placing advertisements of products and
services on the company website, sites which are ranking on the first pages of the
search engine, and sites which are getting a considerable amount of traffic from
Internet users. Internet affiliate marketing is a very good example of online
advertising, which relates to paying your company's product advertiser as per the
sales generation.

Online Newsletters
You can even think of online newsletters as a decent way to pass on product
information for promoting your product and services. Businesses generally issue
online newsletters to regular customers for letting them know what new introductory
offers are available and which new products are likely to be launched. Unlike email
marketing, these online newsletters are issued at regular time intervals.

Media News Rooms

A media news room is a facility on the web that includes most of the company blogs
and information which can be accessed by social media. If the company information
reaches the social media, it takes no time for the information and news to be
transferred to the general public. The information in media news rooms is usually
available to journalists and bloggers, who are visitors searching for specific news
and facts of the products and not just general information. This is also one of the
most effective Internet marketing strategies.

Read more on:

 Effective Internet Marketing Tools

 Effective Internet Marketing Strategies
 Most Effective Internet Marketing Tools

These were few of the most significant aspects to be considered in making an

effective e-marketing strategy. There are many more components such as web
metrics and analyses, RSS feeds, press releases, business blogging, and many
others.

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Effective marketing strategys

Effective Internet Marketing Strategies

Internet marketing strategies allow marketers to reach a wide range of customers in
relatively less time and the distribution costs are fairly low. Online marketing
operates over an interactive media, which makes it more effective. To know about
some of the very effective Internet marketing strategies, read on…
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The processes and means developed by marketers to achieve greater business and
attain customer return are referred to as marketing strategies. The implementation of
a marketing strategy is preceded by thorough market research and analysis of
customer base. During the first phase of online marketing, business companies
research the market to identify their target customers and develop an Internet
marketing plan. The marketing plan consists of an overview of the company goals
and potential business opportunities. It also includes a statistical data about users,
competitors and market trends. The human task force and monetary resources
dedicated towards the implementation of marketing strategies are outlined in the
Internet marketing plan. The marketing strategies and tools to be used are also
included in the marketing plan.

The development of an Internet marketing plan is followed by its effective

implementation. The choice of marketing strategies depends on the size of business
and the types of customer base. Most importantly, it depends on the kind of business
product or service to be marketed on the web. Take a look at some of the effective
Internet marketing strategies.

Build a suitable Domain name: The domain name of your website plays a major
role in web marketing. In case your website deals with the most-visited tourist
destinations, then it is advisable to give it a name like ‘touristspots.com’. Website

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names should be relevant to the subject your website deals with. However, certain
theories recommend the use of easy-to-remember names. Take the example of
Google or Buzzle. These ‘short-n-easy-to-remember’ names have managed to
create a buzz in the Internet user community.

Use Keywords: Now that you have a website of your own, you need to make sure it
is visited by a large number of users. In order to increase the number of users
visiting your website and also to get it bookmarked as a favorite, you need to host
content that is most relevant to your business. For a website to receive higher search
engine ranking, it is important to use the most searched words and phrases in your
web content. Keyword research and SEO strategies help a website in ranking higher
than its competitors.

Implement Search Engine Optimization Techniques: Search engine optimization

aims at improving the quantity and quality of traffic to a website. Editing of web
content and HTML coding with intent of increasing website traffic constitutes search
engine optimization. Besides using key phrases, including links to related web
documents helps in increasing the popularity of your website. Obtaining links from
popular websites is also a part of search engine optimization. As a web marketer,
you can opt for SEO services, which can help you in obtaining a higher search
engine ranking, for your website. Many consider SEO as a part of search engine
marketing, which is a niche area dealing with increasing the visibility of business
websites in search engine results.

Internet Advertising: Displaying banner advertisements on your website is sure to

help you market your business product effectively. You might like to opt for the pay-
per-click advertising model, wherein advertisers pay if a user clicks on an Internet
advertisement. Advertisers bid on keywords that are most likely to be searched by a
large number of users. When content with the bidden keyword is displayed, the
advertisements related to it are also displayed. Google Adwords that offers pay-per-
click advertising is popularly used by many websites. It allows the marketers to
specify words that can trigger advertisements, which are then placed in the
‘sponsored links’ section of Google. If you can obtain e-commerce affiliates for your
website, affiliate marketing can prove being an excellent marketing tool for your
business.

Connect to the Masses: For any of your marketing strategies to work, it is very
important for you to reach out to your customers over the web. The Internet offers
you an excellent communication platform. Email marketing is one of the most
effective Internet marketing strategies, whereby companies send emails to their
customers with intent to enhance customer relationship and keep the customers
informed about the company’s products and services. It is good to build a responsive
opt-in email list. Viral marketing is another effective web marketing technique that
uses existing social networks to achieve business promotion. Blogging and
participating in online forums can help you communicate with a wide customer base.
Article marketing, wherein articles on frequently searched topics are published on
websites, serves as an effective Internet marketing tool.

Strategic Internet marketing is the key to success. It gives the businesses an

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effective way of targeting their customers, improving their sales and achieving an
overall business growth.

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Tips for Plotting a Winning eMarketing Strategy

by Lyndi Lawson

2009/03/24

eMarketing strategy is the plan that you devise and implement to market your products or
services in the online environment. Usually, it makes use of eMarketing tactics like Email
Marketing or Search Engine Optimisation. Of course, there are good strategies and there
are bad strategies. And, in an age where there are 1.3 billion people using the Internet, you
need to be pretty sure that yours is a good one. So here are some tips to help you plan a
winning strategy.

No matter how simple your objectives, a strategy is a good idea. (Image by WorldIslandinfo,
under CC)

1. Determine Your Target Market

There’s no point in trying to sell ice to an Inuit (someone should possibly look into it when
the polar ice caps have melted, though) and there’s no good reason to try and sell steak to a
vegetarian. The point: knowing your target market is the first rule of any successful
marketing strategy, on or offline. Admittedly this may be stating the obvious, but it is
nonetheless an integral and oft neglected aspect of strategy planning and implementation.

2. Set Clear Objectives

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If one of the greatest benefits of using online marketing tactics is their measurability, then it
is important to have something against which to measure your strategy’s success.
Predefining clear goals and desired outcomes will not only give your strategy much
needed direction and focus but, as time goes on, it will also ensure that you can monitor
whether your strategy is doing what it is supposed to. 

3. Think Laterally

Once you have got these initial steps out of the way, you can cast your mind to finding
creative ways to formulate and implement your strategy. This is the fun part. There are a
wide range of eMarketing tactics available to you and innumerable ways to implement
them. Thinking laterally about your strategy from a variety of angles is important though.
It’s all too easy to redo what has been done before and while there is nothing wrong with the
tried and tested approach, one creative idea could be enough to take your strategy to new
heights.

4. Think Holistically

There are a huge range of eMarketing tactics available to you and implementing a fantastic
SEO strategy is useless if your Conversion Optimisation isn’t up to scratch or if your site is
built wholly with flash. When it comes to all things online, it is seldom one tactic that makes
for a fantastic strategy – it is rather the way in which they all work together and interact that
would make the difference.

5. Plan Plan Plan

You might think by this point that the planning part is over. The bad news is that you have a
long way to go. The good news is that more planning in the early stages of strategising
makes it easier for your strategy to be implemented and more successful in the long run. This
is the point at which you need to think through every aspect of your campaign, including how
you plan to measure and track it once it is launched. It is also important to evaluate the
ideas that you have generated in terms of your company’s needs and resources, bearing in
mind your competitors’ strategies, and the ways in which you can make yourself stand out
from the crowd.

6. Budget Budget Budget

Big ideas do not necessarily require big budgets. In fact, the most successful ideas are often
those that are also exceptionally simple. When it comes to thinking about the pennies and
pounds, the first thing is to ensure that you take each and every aspect of your strategy into
account, get accurate quotes and calculate a realistic total expenditure. Once you have done
this, it is necessary to evaluate whether the outcomes and benefits make the cost a feasible
one. In the same way as you wouldn’t pay one Gazillion dollars for a beaten up jalopy of a
car, some strategies are just not worth the budget that they require to implement.

There is no foolproof method for planning an eMarketing strategy that will meet your
objectives and launch your company into instant online success. With the foundations
properly laid however, there’s a good chance that your strategy will be a good one and, if
necessary, will be tweakable over time to ensure the best results.  

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E-marketing strategy - Situation analysis

Introduction to E-marketing strategy

The importance of developing an effective e-marketing strategy is indicated by

Michael Porter (2001) who has said:

‘The key question is not whether to deploy Internet technology – companies have no
choice if they want to stay competitive – but how to deploy it.’

An e-marketing strategy is needed to provide consistent direction for an

organisation’s e-marketing activities that integrates with its other marketing activities
and supports the overall objectives of the business.

For many companies, the first forays into e-marketing or Internet marketing are not
the result of a well-defined, integrated Internet strategy; rather, they are a response
to competitors activities or customers demand.

After a site has been in existence for a year or so, marketing staff and senior
managers in a company will naturally question its effectiveness. This is often the
point at which the need for a coherent Internet marketing strategy becomes
apparent. As a result, the starting point used in this summary of approaches to e-
marketing strategy, is when a company that has an existing site and it is reviewing
the current site and its effectiveness with a view to future improvements.
The e-marketing strategy process

There is no evidence to suggest that the approach to developing and implementing a

strategy should be significantly different for e-marketing. Established frameworks for
corporate strategy development or strategic marketing planning should still be
followed. These frameworks provided a logical sequence to follow which ensures
inclusion of all key activities of strategy development. It can be argued, however, that
with e-marketing there is an even greater need for a highly responsive strategy
process model where rapid reaction can occur to events in the marketplace. The use

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of Soviet-style 5 year planning does not seem appropriate, a preferable approach is

an emergent e-marketing strategy process that is part of a continuous improvement.

Chaffey (2002) notes that e-business or e-marketing strategy process models tend to
share the following characteristics:

 Continuous internal and external environment scanning or analysis are

required.
 Clear statement of vision and objectives is required.
 Strategy development can be broken down into formulation and selection.
 After strategy development, enactment of the strategy occurs as strategy
implementation.
 Control is required to detect problems and adjust the strategy accordingly.
 They must be responsive to changes in the marketplace.

In this article, we will use a four stage model for e-marketing strategy development.
The four stages are:

1. Strategic analysis. Continuous scanning of the micro and macro-environment of

an organization are required with particular emphasis on the changing needs of
customers, actions and business models of competitor and opportunities afforded by
new technologies. Techniques include resource analysis, demand analysis and
competitor analysis, applications portfolio analysis, SWOT analysis and competitive
environment analysis.

2. Strategic objectives. Organisations must have a clear vision on whether digital

media will complement or replace other media and their capacity for change. Clear
objectives must be defined and in particular goals for the online revenue contribution
should be set.

3. Strategy definition. We will discuss strategy definition by asking eight questions.

These will be considered in next month’s article:

 Decision 1. Target market strategies.

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 Decision 2. Positioning and differentiation strategies.

 Decision 3. Resourcing - Internet marketing priorities – significance to
organization.
 Decision 4. CRM focus and financial control
 Decision 5. Market and product development strategies.
 Decision 6. Business and revenue models including product development and
pricing strategies.
 Decision 7 Organisational restructuring required.
 Decision 8. Channel structure modifications.

4. Strategy implementation

Includes devising and executing the tactics needed to achieve strategic objectives.
This includes relaunching a web site, campaigns associated with promoting the site
and monitoring the effectiveness of the site. These issues have been dealt with in
other articles.

We will now examine specific issues of strategic analysis and objective setting that
are related to e-marketing.

1. Strategic analysis.

In common with traditional marketing strategy, strategic analysis or situation analysis

for e-marketing involves review of the:

- internal resources and processes of the company and a review of its activity in the
marketplace;
- immediate competitive environment (micro-environment) including customer
demand and behaviour, competitor activity, marketplace structure and relationships
with suppliers and partners.
- wider environment (macro-environment) in which a company operates including the
social, legal, economic, political and technological factors.

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In this section we will highlight the key aspects of the internal and external
environment that need to be assessed when developing an e-marketing strategy.
Internal resources

These are of particular importance for e-marketing:

- Portfolio analysis and stage models – Considers the sophistication of online

services offered to prospects and customers. From basic ‘brochureware’ sites with
no interaction through those offering online catalogues to fully transactional sites
offering full support for all stages of the customer lifecycle from acquisition, retention
to extension and all stages of the buying process.

- E-marketing effectiveness – How effective is the organisation at converting

browsers to visitors and visitors to prospects and buyers? Analysis of web logs using
diagnostics such as those available from www.marketing-insights.co.uk is important
here.

- Financial resources and cost/benefit – in particular the breakdown for costs of

running the online presence between site development, promotion and maintenance.
Many organisations still do not have good visibility of these costs and the benefits
such as those described in the objective setting section.

- Service quality – human resources and software assistance for answering

customer queries and dispatching goods.

- Technology infrastructure resources – availability and performance (speed) of web

site and service level agreements with the ISP.

- Structure – what are the responsibilities and control mechanisms used to co-
ordinate Internet marketing across different departments and business units. We
return to this topic next month.

- Strengths and Weaknesses – SWOT analysis can be readily applied to e-marketing

specific issues.

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The Internet micro-environment

Pertinent factors for the Internet include demand analysis, competitor analysis
intermediary analysis, channel structure. Porter (2001) has written extensively about
how the Internet has changed the dynamic of the marketplace and has reinterpreted
his often-quoted five forces model in the Internet era.

Demand analysis or online customer activity is a key factor driving e-marketing and
e-business strategy objectives. It assesses the current level and future projections of
customer demand for e-commerce services in different market segments. In a B2B
context customer activity can be determined by asking for each market:

- What % of customer businesses have access to the Internet?

- What % of members of the buying decision in these businesses have access to the
Internet?

- What % of customers are prepared to purchase your particular product online?

- What % of customers with access to the Internet are not prepared to purchase
online, but choose or are influenced by web-based information to buy products
offline?

- What are the barriers to adoption and the facilitators amongst customers and how
can we encourage adoption?

Qualitative research is important to informing strategy since it identifies the

differences in psychographics between current online customers and those that are
not offline.

Resources for assessing the ratio of ‘Access : Choose : Buy’ online have been
reviewed in WNIM 5 and 6.

Competitor analysis or the monitoring of competitor use of e-commerce to acquire

and retain customers is especially important in the e-marketplace due to the dynamic
nature of the Internet medium. Chaffey (2002) suggests comparing the activity of an

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organisation and its competitors for their different channels by trying to answer these
questions:

1. Business contribution

How does Internet marketing contribute to the bottom line? What is the online
revenue contribution (direct and indirect), costs and profitability?

2. Marketing outcomes

How many marketing outcomes are achieved online? For example, what proportion
of leads, sales, service contacts occur online? How effective is online marketing at
acquiring, converting and retaining customers?

3. Customer satisfaction

What are the customers’ opinions of the online experience and how does this affect
their loyalty?

4. Customer behaviour (Web analytics)

This assesses how different customer segments interact with web site content and
assesses how the actions they take are influenced by usability, design, content,
promotions and services.

5. Site promotion

How effective are the different promotional tools such as search engines, e-mail,
direct marketing and advertising at driving quality traffic to the web site? Measures
include attraction efficiency, referrer efficiency, cost of acquisition, reach and the
integration between tools. Analysis of the use of intermediaries to build and service
business is also important here.

The Internet macro-environment

It can be suggested that of the different Social, Legal, Economic, Political and
Technological characteristics of the macro-environment, the three most significant

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factors described in more depth in chapter 3 are legal constraints – What are the
legal limitations to online promotion and trade such as data protection and taxation,
ethical constraints such as privacy and technological constraints – what is the
current availability and usage of technology to access the Internet and offer
distinctive services and how is this likely to vary in the future?

2. Strategic objectives.

Smith and Chaffey (2001) suggest there are five broad benefits, reasons or
objectives of e-marketing. This framework is useful since it presents a
comprehensive range of objectives. Marketers will decide whether all or only some
will drive e-marketing:

 Sell – Grow sales (through wider distribution to customers you can’t service
offline or perhaps through a wider product range than in-store, or better
prices)
 Serve – Add value (give customers extra benefits online: or inform product
development through online dialogue and feedback)
 Speak – Get closer to customers by tracking them, asking them questions,
conducting online interviews, creating a dialogue, monitoring chat rooms,
learning about them
 Save – Save costs - of service, sales transactions and administration, print
and post. Can you reduce transaction costs and therefore either make online
sales more profitable? Or use cost-savings to enable you to cut prices, which
in turn could enable you to generate greater market share?
 Sizzle – Extend the brand online. Reinforce brand values in a totally new
medium. The Web scores very highly as a medium for creating brand
awareness, recognition and involvement.

Specific objectives should be created for each of the 5Ss. Consider Sales – a typical
objective might be:

‘To grow the business with online sales e.g. to generate at least 10% of sales online.
Within 6 months.’

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or

‘To generate an extra £100,000 worth of sales online by December’.

These objectives can be further broken down according to CRM objectives of

acquisition, conversion and retention, e.g. to achieve £100,000 of online sales
means you have to generate 1,000 online customers spending on average £100 in
the time period. If, say, your conversion rate of visitors to customers was 1% then
this means you have to generate 100,000 visitors to your site. Achieving repeat visits
and sales would form further objectives.
The online revenue contribution

The key objective for e-marketing is the online revenue contribution. This is a
measure of the extent to which a companies online presence directly impacts the
sales revenue of an organisation. Online revenue contribution objectives can be
specified for different types of products, customer segments and geographic
markets.

Companies that can set a high online revenue contribution objective of say 25% for 2
years time will need to provide more resource allocation to the Internet than those
companies who anticipate a contribution of 2.5%. Cisco Systems Inc
(www.cisco.com) maker of computer networking gear, is now selling around 90% of
its 20 billion dollars sales online. This was achieved since senior executives at Cisco
identified the significance of the medium, setting aggressive targets for the online
revenue contribution and resourcing the e-commerce initiative accordingly.

A further example is provided by Sandvik Steel. The Financial Times reported in

June 2001 that around 20 per cent of all orders from Denmark are online and 31 per
cent of those from Sweden. The proportion in the US, however, is only 3 per cent,
since most business goes through distributors and is conducted by EDI (electronic
data interchange), the pre-internet means of e-commerce. Over the next six months,
the company hopes to raise the US figure to 40 per cent. Mr Fredriksson hopes that
in two years, between 40 and 50 per cent of total orders will come via the web.

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However, for some companies such as an FMCG manufacturer, it is unrealistic to

expect a high direct online revenue contribution. In this case, an indirect online
contribution can be stated. This considers the Internet as part of the promotional mix
and its role in reaching and influencing a proportion of customers to purchase the
product or in building the brand. In this case a company could set an online
promotion contribution of 5% of its target market visiting the web site and interacting
with the brand. Where sales achieved offline are a consequence of online selection
of products this is referred to as the indirect revenue contribution.

Summary - E-marketing strategy

We have looked at the first two parts of a strategy process, key issues for these are:

1. Situation analysis. Internal audit including review of services/portfolio analysis,

cost/benefit analysis, e-marketing effectiveness analysis. External audit of which the
macro-economic factors of demand analysis and competitor analysis are arguably
most important.

2. Objectives setting. The 5 S s of Sell, Speak, Serve, Save and Sizzle. The direct
and indirect online revenue contribution.

References

Chaffey, D. (2002) E-business and e-commerce management. Financial

Times/Prentice Hall. Harlow, UK.

Smith, P.R. and Chaffey, D. (2001) eMarketing eXcellence: at the heart of

eBusiness. Butterworth Heinemann, Oxford, UK.

Porter, M. (2001) Strategy and the Internet. Harvard Business Review. March 2001,
62-78.

Note: This article is one of a series originally written between 2000 and 2003 for The
Chartered Institute of Marketing What's New in Marketing Newsletter. Many of the
concepts remain valid, but some more recent concepts such as Web 2.0 and social
networks aren't referenced.

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