E-MARKETING/6E

CHAPTER 2
Strategic E-Marketing and
Performance Metrics
2-1
2-2 CHAPTER 2 OBJECTIVES
◎ After this session, you will be able to:
◉ Explain the importance of strategic
planning, strategy, e-business strategy, and
e-marketing strategy.
◉ Identify the main e-business models at the
activity, business process, and enterprise
levels.
◉ Discuss the use of performance metrics and
the Balanced Scorecard to measure
e-business and e-marketing performance.

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2-3 THE AMAZON STORY
◎ Founded in 1995 as an online retailer.
◉ Did not become profitable until Q4
2001.
◉ In 2009, generated $24.5 billion in net
sales, $902 million in net income.
◎ Leveraged its competencies into different
e-business models.
◉ Established e-commerce partnerships
with Target, Macy’s, and others.
◉ Provided developer services.
◉ Created the first affiliate program.

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2-4 THE AMAZON STORY, CONT.

◎ Amazon’s success is based on selection,

lower prices, product availability,
innovative technology, and better product
information.
◎ CEO Jeff Bezos is not interested in
expanding to the physical world.
◎ Which of Amazon’s core competencies do
you think will drive its strategy in the
future?

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2-5 STRATEGIC PLANNING
◎ A managerial process to develop and
maintain a viable fit between the
organization and its changing market
opportunities.
◎ Process identifies firm’s goals for
◉ Growth
◉ Competitive position
◉ Geographic scope
◉ Other objectives, such as industry,
products, etc.

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 ESP: ENVIRONMENT, STRATEGY,
AND PERFORMANCE
2-6

◎ The e-marketing plan flows from the

organization’s overall goals and strategies.
◎ The ESP framework illustrates the
relationships among environment, strategy,
and performance.
◎ A SWOT analysis of the business
environment (E) leads to the development
of strategy (S) and the measurement of
performance (P).
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2-7 ESP FRAMEWORK

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2-8 STRATEGY

◎ Strategy is the means to achieve a goal.

◎ E-business strategy
◉ Strategy that deploys enterprise
resources to reach performance
objectives, competitive advantages.
◎ E-marketing strategy
◉ Strategy that capitalizes on information
technology to reach marketing
objectives.
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2-9 BUSINESS MODELS
◎ A business model is a method for long-term
survival and a value proposition for
partners, customers, and revenue.
◎ E-business models include the use of
information technology to achieve
long-term goals.
◎ Firm selects one or more models as
strategies to accomplish enterprise goals.

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 SELECTING A BUSINESS
2-10
MODEL
◎ A firm will select one or more business models as
strategies to accomplish enterprise goals.
◎ Components of business model selections:
Customer value Scope

Price Revenue sources

Connected activities Implementation

Capabilities Sustainability

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 LEVEL OF COMMITMENT
TO E-BUSINESS
2-11

Pure dot-com
(Amazon, MySpace)

Both online and offline

(Dell and most retailers)

e-mail, blog

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 ACTIVITY-LEVEL
2-12
E-BUSINESS
1. Online purchasing
MODELS
2. Order processing
3. E-mail
4. Content publishing
5. Business intelligence (BI)
6. Online advertising and public relations (PR)
7. Online sales promotions
8. Pricing strategies
9. Social media communication

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 BUSINESS PROCESS-LEVEL
2-13
E-BUSINESS
1.
MODELS
Customer relationship management (CRM)
2. Knowledge management (KM)
3. Supply chain management (SCM)
4. Community building
5. Affiliate programs
6. Database marketing
7. Enterprise resource planning (ERP)
8. Mass customization
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 ENTERPRISE-LEVEL
2-14
E-BUSINESS MODELS
1. E-commerce
2. Direct distribution
3. Portal
4. Social networking
5. Online brokers
◉ Online exchange
◉ Online auction
◉ B2B exchange
6. Online Agents
◉ Selling agents
◉ Manufacturer’s agents
◉ Purchasing agents

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2-15 PURE PLAY
◎ Pure plays are businesses that began on the
internet.
◉ They represent the final level of the
pyramid.
◎ Pure plays face significant challenges.
◉ They must compete as new brands.
◉ They may need to take customers away
from established businesses.
◎ Some pure plays have redefined industries:
Yahoo!, Twitter, and eBay.

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 PERFORMANCE METRICS
2-16
INFORM
STRATEGY
◎ Performance metrics are specific measures
designed to evaluate the effectiveness and
efficiency of operations.
◎ Performance metrics:
◉ Provide measurable outcomes.
◉ Must be easy to understand and use.
◉ Must be actionable.
◉ Can motivate employees to make decisions
that lead to desired outcomes.

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2-17 WEB ANALYTICS
◎ Web analytics is the e-marketing term for the study of
user behavior on Web pages.
◎ Metrics measure activities such as:
◉ Click throughs from advertising
◉ Page views
◉ Number of comments posted on a blog
◉ Number of fans on a company Facebook page
◉ Conversions to sales
◎ Web analytics software helps companies analyze data
on server logs for marketing purposes.

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2-18 DATA COLLECTION

◎ Data for web analytics are collected in

several ways:
◉ Website server logs
◉ Cookie files
◉ Page tags
◎ Exhibit 2.5 lists some of the most used
online metrics.

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2-19
ONLINE MARKETING MEASUREMENT
TOOL USE

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225-
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Thank you and stay healthy!

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