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e-Marketing Strategy

Course Instructor - Anurag Hans
anuraghans.iilm@gmail.com

Structure
Figure 1.2: The Book’s Structure
A. INTRODUCTION
1. Overview 2. Marketing Strategy - Analysis & Perspectives

C. WHERE DO YOU WANT TO BE? B. WHERE ARE WE NOW?
3. Environmental Analysis: Market Information and Intelligence 4. Strategic Marketing Decisions & Choices 5. Segmentation, Targeting & Positioning Strategies 6. Relationship Strategies

E. DID WE GET THERE?
13. Strategy Implementation, Control & Financial/Quantitative Analyses

D. HOW WILL WE GET THERE?
7. Product Innovation & Development 8. Branding Strategies 9. Service Marketing 10. Pricing & Distribution 11. Marketing Communications 12. E-Marketing

F. CONCLUSION
14. Social Marketing & CSR

many observers have argued that the old rules about marketing strategy have changed Organisations that treat the Internet as an evolutionary force tend to outperform organisations that see it as revolutionary E-markets are ‘smart’ Most customers are concerned by convenience rather than price E-marketing is thus more about differentiation than cost .Introduction      In the general excitement over the Internet.

For example. Navigation and selection occur independently of physical warehousing and distribution and bricks and mortar companies no longer have any special advantages Navigation is the key to profit potential . navigation also occurs in physical commerce. no one reviews all the possible options in buying a shirt or pair of shoes Over the Internet it is possible to search extensively at negligible cost.Navigation     Navigation is a term linked to E-marketing: the process of steering between the mass and variety of information in cyberspace However.

Navigation Dimensions Reach How many customers a business can access and how many products it can offer Is about whose interest the business represents Affiliation Is the depth and detail of information that the business gives the customer and collects about the customer Richness Relates to the breadth and depth of the products and services offered Range (Wells & Gobeli. 2003) Critical to decide on what dimension do you want to leverage e-marketing .

they will be faced with the prospect of catering solely to price-sensitive . so unless companies can lock customers in.Loyalty  Acquiring customers on the Web is extremely expensive.

Customization Identify Differentiate Interact Customize .

phone numbers… .Identify   Being able to locate and contact a number of customers directly. or at least a large chunk of the most valuable ones and understand their behaviour Habits and preferences as well as the addresses.

Differentiate  Recognises different levels of value and needs Invaluable for deciding on the best Emarketing strategy in any given situation People will do business with sites that make their lives easier and are prepared to pay a premium   .

Interact    Hiring an outside service for scanning or data entry Drip-irrigation (asking only one or two questions each transaction) Periodic review of the integrity of the list .

Customisation    Choiceboards are on-line systems that interact with customers so that they can design their own goods and services from a menu of features Instead of having to haggle over the price of fixed product lines. the Internet changes commerce and enables consumers to describe exactly what they want Furthermore. suppliers are able to deliver bespoke goods and services without compromise or delay .

Communities      Communities enable consumers to communicate with each other The aim is to build differentiation through relationships Communities like Facebook. Orkut and Twitter have started acting as virtual meeting points of e-savvy consumers Exchanges provide brands with free content and consumers appreciate the ability of meeting likeminded people Content and exchanges act like magnets and draw people back frequently and regularly .

and understand which of the current components can be managed better using e-marketing strategies .Conclusion    E-marketing strategy is rooted in the classic elements of the Five Forces and sustainable competitive advantage Any e-marketing strategies should be based on businesses run like bricks and mortar companies using classic metrics like gross margin and size of order However. to achieve e-marketing success it may often be necessary to mentally break down the current business model into its components.

Control. and Finance/Quantitative Analysis Course Instructor .Anurag Hans anuraghans.Strategy Implementation.com .iilm@gmail.

HOW WILL WE GET THERE? 7. E-Marketing F. Branding Strategies 9. Marketing Strategy . CONCLUSION 14.2: The Book’s Structure A. Targeting & Positioning Strategies 6.Structure Figure 1. Control & Financial/Quantitative Analyses D.Analysis & Perspectives C. INTRODUCTION 1. Strategic Marketing Decisions & Choices 5. Pricing & Distribution 11. Strategy Implementation. Product Innovation & Development 8. Segmentation. Relationship Strategies E. DID WE GET THERE? 13. Marketing Communications 12. WHERE DO YOU WANT TO BE? B. Environmental Analysis: Market Information and Intelligence 4. Service Marketing 10. Social Marketing & CSR . WHERE ARE WE NOW? 3. Overview 2.

and its related activity. implementation In future a firm’s marketing success will hinge not so much on having a good strategy. and allocate substantial effort to the organization of marketing activities and human resources Yet less time is given to the fundamental marketing task of controlling.Introduction     Most marketing practitioners spend large amounts of time planning and formulating marketing strategy They endeavour to direct the actions of marketing personnel. but on how well this strategy is implemented and controlled . the sales force and channel intermediaries.

Basic Steps in Control 1. 3. 2. Set standards of performance (these are typically in the form of goals or objectives) Evaluate the reality of what occurs against these steps Take corrective or reinforcing action where required .

of units sold Sales-COGS (Indicates Gross Profit margin (Your competitiveness) manufacturing efficiency) Selling.Competitive Advantage & Control variables How to measure Customer satisfaction surveys Customer Service Quality studies Satisfaction Difference between expectations and perceptions SERVQUAL Willingness to choose your brand over others Loyalty Surveys Retention studies Customer Loyalty Customer Churn Defection studies Company and competitor's sales Market Share Proportion of total market serviced by a company or no. Admin Financial Expenses/Sales (Indicates admin Productivity SG&A to sales (Control admin expenses) efficiency) How much profit per rupee of Net Profit margin (How much money do you generate) sales ROE (How investment friendly is your business) Net Profit/Equity ROA (Are you making optimal use of assets) Net profit/Assets Outcome What does it indicate Overall customer satisfaction . General. of units sold Sales Growth % change in sales % costs that are used to produce COGS to sales (Your productivity) no.

Take Action Possible Outcome 2: 35% market share Reinforcing Action . Marketing Objective is to attain 25% market share 2. Set Standards Corrective Action e. Evaluate Standards Against Reality 3.Steps in the Control Process Possible Outcome 1: 15% market share 1.g.

Strategic control often takes the form of a marketing audit . and the corrective or reinforcing actions needed to attain these The purpose of strategic control is to ensure that the organization is maximizing the opportunities that exist in its business environment. and takes corrective or reinforcing action when necessary Financial or Expense control considers the financial parameters and objectives set by a firm in its annual marketing plan. evaluates these against the actual results achieved.Nature of Control    Annual Plan control looks at the objectives set in the annual marketing plan.

Customer Life time value (CLTV)     Based on the understanding that it is much more expensive to acquire a new customer rather than retaining an existing customer CLTV is the overall revenues and profits which a customer would give the company over his lifetime association with the company/brand Each customer can have a personal profit and loss account from the perspective of the company Critical to keep the high profit margin customers loyal to the brand .

either by increasing the firm’s share of the customer’s purchases. or by increasing the customer’s referral rate Cutting the Costs of serving a customer . the number of years a customer can remain a customer) Increasing Sales to a Customer. or increasing customer life (i.Increasing CLTV    Increasing retention rate.e.

which emphasizes competitiveness and goal achievement (Deshpande.Corporate Culture     The Clan culture. 1993) . which emphasizes order. Farley and Webster. which emphasises teamwork and cooperation The Adhocracy culture. regulations and rules The Market culture. which emphasizes entrepreneurship and creativity The Hierarchy culture.

The BCG Matrix .

E.The G. Matrix .

The Value Chain Analysis .