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E-Marketing Planning and Strategies

Gary Akehurst

E-Marketing Planning and Strategies

Market-oriented strategic planning is the managerial process of developing and maintaining a viable fit between the organisations objectives, skills and resources and its changing market opportunities.
The aim of strategic planning is to shape and reshape the companys businesses and products so that they yield target profits and growth.
Kotler, P. (1997) Marketing management, (9th ed), Upper Saddle River, NJ: Prentice Hall International, p.63

E-Marketing Planning and Strategies

Competition - competitive forces, analysing competitors Monitoring environmental change - managing strategic environmental issues Opportunities - market and sales opportunity analysis Competitive advantage - distinctive capabilities, cost and differentiation strategies, product differentiation strategies Resource reviews Strategic fit - fitting both market opportunities and internal capabilities

E-Marketing Planning and Strategies

There are five types of company:


1. those who make things happen 2. those who think they make things happen 3. those who watch things happen 4. those who wonder what happened, and 5. those that did not know that anything had happened

E-Marketing Planning and Strategies

Without planning a company drifts without realising it Drifting means the company can end up anywhere There is no sense of purpose, or direction End result is usually liquidation or take-over Cash flows usually become erratic

E-Marketing Planning and Strategies

Planning is essential It gives a sense of purpose and direction Stops constant fire-fighting Stops panicking Put managers in control

E-Marketing Planning and Strategies

marketing strategy is a series of integrated actions leading to a sustainable competitive advantage strategic marketing seeks to secure and maintain competitive advantage in order to meet the goals of the organisation searching for advantage involves both an inwardlooking resource-based view and an outwardlooking view of market and selling opportunities it involves consideration of the interaction of three key variables: external environment, organisation goals and strategies

E-Marketing Planning and Strategies

1 objectives

vision
corporate objectives

2 situation review

marketing audit SWOT analysis formulate strategies forecasts


budgets

Strategic Focus what business are we in? what business should we be in? what business should we not be in?

identify opportunities target markets product, price, promotion and distribution strategies

3 strategies and plans

4 action
Implementation programme control Performance review and evaluation action: products, prices, promotion, distribution

E-Marketing Planning and Strategies

An e-marketing strategy needs to be fully integrated into an organisations business and marketing strategies and plans Rather than have a separate e-marketing strategy it is important to have an integrated marketing plan with an e-marketing plan as a sub-set of that marketing plan

E-Marketing Planning and Strategies

E-marketing strategy as a detailed sub-set of overall marketing planning But also part of the investment for a new web site And part of the investment in upgrading and extending a website

E-Marketing Planning and Strategies


Environment-strategy-performance model
Legal-ethical Technology Competition Other factors SWOT

internet

markets

E-marketing plan

E-business strategy

E-marketing strategy

E-marketing mix CRM

Performance metrics
Source: Strauss, El-Ansary & Frost (2006:23)

E-Marketing Planning and Strategies

Environmental Influences
broad environmental variables: economy, technology, society industry variables: industry structure, lifecycle, specific technology, structure of competition, strategies and performance market variables: lifecycle, segment structure, demand influences, purchase size and frequency

E-Marketing Planning and Strategies

Goals (Objectives)
sustainable competitive advantage as a means to sales, market share, profit and other objectives to satisfy stakeholders

E-Marketing Planning and Strategies


The Ashridge Mission Model PURPOSE why the company exists STRATEGY competitive position and distinctive competence VALUES what the company believes in

STANDARDS AND BEHAVIOURS policies and behaviour patterns underpinning the distinctive competence and value system

E-Marketing Planning and Strategies


Factors influencing company marketing strategies
Demographic/ economic environment Marketing and sales information system Marketing and sales intermediaries Technical/ physical environment

suppliers
product

place

Target customer s

price

Marketing planning system

promotion

publics competitors Political/ legal environment


Marketing & sales organisation system

publics Marketing organisation and implementation system

Social/ cultural environment

E-Marketing Planning and Strategies


Factors influencing competitive success
Environmental factors e.g. rate of technological change nature of competition intensity of competition

Organisational factors e.g. size structure culture innovation capability

Strategic factors e.g. long-term objectives strategic time horizon product-market strategy

Marketing factors e.g. use of market research customer service product quality

Managerial factors e.g. communication attitudes leadership style

Business Performance

Source: after Baker & Hart (1989)

E-Marketing Planning and Strategies

Strategies bedrock strategy - to build and sustain capabilities of reputation, know-how, relationships, physical resources then determine strategies to transform these into positional advantage vis a vis competitors must derive strategies for market positioning in the chosen target segments have strategies to deliver continuing customer satisfaction

E-Marketing Planning and Strategies

Value creation for customers


Organisation capabilities Used to create value for customers Provide customers with desired benefits

Careful assessment of these capabilities what capabilities to build analysis of opportunities choice of opportunities to address Internet website and ecommerce

E-Marketing Planning and Strategies

Creating value for customers

surest way of gaining and keeping competitive advantage is to create better value for customers customer come back for more and a long-term customer relationship develops The internet and development of e-commerce offers great opportunities for creating value for customers

E-Marketing Planning and Strategies

value-defining processes [influenced by e-marketing]


market sensing to understand what customers value (what benefits buying) assess what the organisation creates from a customer perspective value-developing processes [influenced by e-marketing] what creates customer value in the value chain? how can customer value be enhanced through product and service development? what facilitates and inhibits better product or service delivery

E-Marketing Planning and Strategies

Value-delivering processes [influenced by e-marketing] can the product or service be better delivered? can it be made available at better times in better locations?

Value-maintaining processes [influenced by e-marketing customer linking, channel bonding, managing brand equity

E-Marketing Planning and Strategies

But customer expectations change what customers consider excellent value today will probably be average value tomorrow customers are increasingly demanding this is exacerbated by competitors who see advantage in meeting these higher demands other companies develop product and service enhancements which set new expectation standards change is endemic and built-in to most markets therefore, there is a need to continuously monitor and adapt

E-Marketing Planning and Strategies

Potential benefits of an Internet site:


Improvement in corporate identity and image Improved customer service Increased visibility among targeted segments Market expansion Online transactions Lower communication costs

Source: Sterne (1999)

E-Marketing Planning and Strategies

Website generations: 1. First generation: static electronic brochures, supplier broadcasting to many potential and existing customers 2. Second generation: interactive website, with product stock availability, FAQs and pricing information; still supplier driven 3. Third generation: fully interactive website, personalisation and market research information collection

E-Marketing Planning and Strategies

Deliberate and emergent strategies

Deliberate strategy Unrealised strategy

Realised strategy

Emergent strategy

Source: Baker, M.J. (2000) Marketing strategy and management, (3rd Ed), Basingstoke: Macmillan

E-Marketing Planning and Strategies

Unpredictable factors

Course plotted

Desired objective

Predictable factors

Source: Baker, M.J. (2000) Marketing strategy and management, (3rd ed), Basingstoke: Macmillan

E-Marketing Planning and Strategies

Strategic planning calls for action on: managing the companys businesses as an investment portfolio (each business has a different profit potential so should allocate resources accordingly) assessing each business by considering the markets growth rate, the companys position and fit in that market strategy - each business needs to develop a game plan for achieving its long-run objectives

E-Marketing Planning and Strategies


Basic Conditions
Supply raw material technology product durability value/weight Demand price elasticity substitutes rate of growth cyclical, seasonal

The structure-conductperformance paradigm

Market structure
number of buyers and sellers product differentiation barriers to entry cost structures vertical integration diversification

Conduct pricing behaviour product strategy and advertising research and innovation plant investment legal tactics Performance production and allocative efficiency progress, full employment equity

Public Policy taxes and subsidies regulation price controls antitrust information

E-Marketing Planning and Strategies


Threat of new entrants

Porters five forces

Bargaining power of suppliers

The industry jockeying for position among current competitors

Bargaining power of customers

Threat of substitute products or services

E-Marketing Planning and Strategies

Planning
corporate planning

Implementing
organising

Controlling
Measuring results

division planning business planning product planning E-marketing planning

implementing
action

diagnosing results

taking corrective action

E-Marketing Planning and Strategies

External environment
(opportunities and threats)

Business mission

SWOT Analysis
Internal environment
(strength and weaknesses analysis)

Goal formulation

Strategy formulation

Programme formulation

Business strategic planning process

implementation

Feedback and control

E-Marketing Planning and Strategies

1.

2. 3.

4.

Objectives: what business do we want to be in? (where do we want to be?) Situation Review: where are we now? Strategies, Tactics and Plans: how do we get there?, how do we exactly get there? Action and Control: doing it and asking did we get there?

E-Marketing Planning and Strategies


Business definition

Preliminary objectives

Environmental situation
Opportunities and threats Strategic thinking identify key issues develop strategy options Analysis resolve issues evaluate options

Competitive situation
Strengths and weaknesses

Resources and capabilities

Decisions

Analysis of past performance

Specification of present strategy

strategy performance objectives

E-Marketing Planning and Strategies

Corporate business planning

Internet marketing plan (sub-set of marketing plan)

Design website

Implement website

Control, review, modify

Monitor website
Source: adapted from Chaffey et al (2000: 124)

E-Marketing Planning and Strategies

Baker, M.J. (2000) Marketing strategy and management, (3rd ed), Basingstoke: Macmillan Chaffey, D. (2002) E-business and e-commerce management, Harlow: Financial Times Prentice Hall, Chapter 5: E-Business Strategy and Chapter 8: EMarketing Chaffey, D., Mayer, R., Johnston, K. & Ellis-Chadwick, F. (2003). Internet marketing. (second edition). London: Pearson Education. Chapter 4: Internet Marketing Strategy (third edition 2006) Chaston, I. (2001) E-marketing strategy, London: McGraw-Hill Kotler, P. (1997) Marketing management, (9th edition), Upper Saddle River, NJ: Prentice Hall International Sterne, J. (1999) World wide web marketing (2nd ed), New York: John Wiley Strauss, J. and R. Frost (2001) E-marketing, Upper Saddle River, NJ: Prentice Hall, Chapter 8: The E-Marketing Plan Strauss, J., El-Ansary, A. and R. Frost (2006) E-marketing, (4th ed), Upper Saddle River, NJ: Prentice Hall, Chapter 3: The E-Marketing Plan