Mkt-330, Digital Marketing and social networking for businesses.

Lecture #2, Strategic E-Marketing Planning & E-Business Models.

Prepared By: Ehfaz Nowman (EhN)
Presentation Outline

 How to deploy internet technology?

 How does e-marketing strategy relate to
organizational growth strategies?
 Strategic Planning
 Performance metrics
 E-Business models
Michael Porter on the Internet
Should traditional methods or the Internet be used to compete?


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.’
 Porter, M. (2001) Strategy and the Internet, Harvard Business Review, March 2001, 62–78.
What do you want the Internet to do

 ADAPT YOUR EXISTING BUSINESS

OR USE IT AT A PLATFORM FOR A
NEW BUSINESS?
How to deploy internet technology?

 Today’s agenda:

 Internet as a Platform strategy

 Level of commitments to e-business (Textbook, p54)
 5S of internet marketing
Internet as a Platform strategy
Bricks and Mortar eg
Bricks and Clicks
Majority Clicks
Click to brick
Level of commitments to e-business.
(Shift from offline to online strategy)
Level of commitments to e-business
Using the Internet to Support Different
Organizational Growth Strategies
 If you want to adapt, which do you chose

 Your decision should be based on:

 Financial justification: cost/benefit analysis/ROI etc
 Operational justification: Staff?
 Strategic justification: does Online fit with the company’s overall mission, vision?
 Technical justification: Country’s infrastructure? Your own expertise?
“The 5 Ss of internet marketing”
Benefit of E-Marketing
 Sell – Grow Sales
 Serve – Add Value
 Speak – Get closer to customers
 Save – Save Costs
 Sizzle – Extend the brand online

Source: Chaffey et al. (2009) Internet Marketing (4th ed), p.17 .
Lets take a break
 But…

 What if you want to base your business online?

What if you don’t use the online platform to adapt
but rather as an opportunity to start an entirely new
business from ground up?
The E-Marketing Planning Process

 The e-marketing plan is a blueprint for e-

marketing strategy formulation and
implementation.
 Various planning templates or frameworks

 Google for one!

Starting a new online business
 Study the environment (both outwards and inwards)
 Strategize
 Some sort of control mechanism

Resources (Example):
Microsoft Startup Center: http://www.microsoft.com/smallbusiness/startup-toolkit/resources/recession-
proof-startup-business.aspx#Startups,budgetingexpenses
 ESP Framework (Textbook, p50)

 The ESP framework illustrates the relationships among Environment, Strategy,

and Performance.
1.Situation analysis
2.Objectives
3.E-Marketing strategy
4.Implementation plan
5.Budget
6.Evaluation plan
 SOSTAC :
 Digital marketing strategy and planning model
 PR Smith and Dave Chaffey
http://www.smartinsights.com/digital-marketing-strategy/sostac-model/
Situation Analysis

Marketplace SWOT
•5 Ss
Sell: Can it be sold?
Serve: Can a value to added to the customers
Sizzle: Can offline be extended to online
Speak: Can we use the medium to speak to our
customers
Save: Can it be used to save cost
SWOT & Strategic Implications

STRENGTH WEAKNESS

OPPORTUNITIE SO WO
S

THREATS ST WT

SO: UTILIZE IT MORE

WO: WORK HARDER
ST: DEFEND YOUR STRENGTH
WT: GET RID OF THEM
Objectives
 Strategy – How do we get there?

What is strategy?
 Strategic Planning: The process of developing and maintaining a strategic fit between the organization's goals
and capabilities in the light of changing marketing opportunities.

 Part of the process is to identify company’s goals

 Growth – how much can the company reasonably grow in terms of revenue and how fast? (by considering competition,
market factors and PLC)
 Competitive position – your positioning relative to competitors (industry leader: Google, Price leader: priceline, Quality
leader: Mercedes, Niche company: eMarketer, Best Customer Service: Amazon)
 Geographic scope – Where should the company serve its customers?
 Other objective– Specific objective for specific industries
1. Segment the market

2. Choose your target

3. Decide on objectives for each of your

targets

4. Decide on a positioning strategy for each of

those targets
27
Positioning Strategies

Attributes &
Price /Quality Use/Application
Benefits

Product Class Product Users Competitors

Cultural Symbols
 Positioning by Product Attributes & Benefits

• Talks about specific characteristics and benefits offered

• Salient attributes
 Positioning by Price/Quality

• Reflects the image of a high quality brand, while cost, if not

irrelevant, secondary
• Product quality must reflect the high price
 Positioning by product Class

• Competition comes from outside the product

class/category. This positioning tries to battle it

 Positioning by Competitors

• Position their products against the competitor’s

positioning
Positioning by Symbols
Strategic Fit
Tactics (working out the details)

 The details of strategy

 Product
 Price
 Promotion
 Place
 People
 Process
 Physical Evidences/environment
 Partnership
 Action (Implementation)

 Tactical Planning how to implement your strategy

Example of a Gantt Chart
 Control

 Performance metrics (KPI) are specific

measures designed to evaluate the
effectiveness and efficiency of operations.
 Performance Metrics

 Web Analytics: Web analytics is the e-marketing term for the

study of user behavior on Web pages. Data collection methods
 Types of measures Textbook p60-
 Innovation metrics :
• New idea shared on company page
• Trend spotting
Financial metrics:
• ROI, sales/revenue figures, Cost savings

Social media performance metrics:

• Social media subscribers, views/likes/shares/comments

Awareness / exposure metrics:

• Unique visitors
• Page view
• Impression: no of times an ad loads on a user’s screen
• Number of searches
• Search engine ranking

Brand health metrics:

• SOV: conversations about you vs your competition

Action metrics:
• Click through rate, contact form fillups,purchase
E-Business Model

 An e-business model is a method by which

the organization sustains itself in the long
term and includes its value proposition for
partners and customers as well as its revenue
streams, via direct connection with
information technology
 Value Proposition

 Value= Benefits – Costs

 Why is it important for E-business model to create value in a way that is differentiated in the way
competitor’s model create value?
 Revenue Streams
 How will the firm earn revenue, generate profits, and produce a superior return on
invested capital?
 Major types
 Advertising revenue model

 Subscription revenue model

 Transaction fee revenue model

 Sales revenue model

 Affiliate revenue model

Types of business models