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E-Marketing Judy Strauss, Adel I. El- Ansary , and Raymond Frost – 4/E

E-Marketing Judy Strauss, Adel I. El- Ansary , and Raymond Frost – 4/E. Chapter 1: Past, Present and Future Chapter 2 : Strategic E-Marketing Chapter 3 : The E-Marketing Plan. Delivered by : Djati Adi Wicaksono - Session 4 -.

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E-Marketing Judy Strauss, Adel I. El- Ansary , and Raymond Frost – 4/E

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  1. E-MarketingJudy Strauss, Adel I. El-Ansary,and Raymond Frost – 4/E Chapter 1: Past, Present and Future Chapter 2 : Strategic E-Marketing Chapter 3 : The E-Marketing Plan Delivered by : Djati Adi Wicaksono- Session 4 -

  2. E-Marketing 4/EJudy Strauss, Adel I. El-Ansary, and Raymond Frost Chapter 1: Convergence

  3. E-marketing Defined • The use of information technology • to create, communicate, and deliver value to customers. • for managing customer relationships to benefit the organization. • The result of information technology applied to traditional marketing.

  4. E-Business, E-Commerce, andE-Marketing • E-business is the continuous optimization of a firm’s business activities through digital technology. • E-commerce is the subset of e-business focused on transactions. • E-marketing is one part of an organization’s e-business activities.

  5. The Internet • A global network of interconnected networks. • Data move over phone lines, cables and satellites. • Three types of networks form part of the Internet: • Intranet: network that runs internally in an organization. • Extranet: two joined networks that share information. • Web: how most people refer to the Internet.

  6. Internet across the globe:(source : www.internetworldstats.com, Jun 2009)

  7. The Web Is One Aspect of E-Marketing Automobile Refrigerator Television Web UPC Scanner Internet PC Database PDA E-mail Cell Phone

  8. E-Business Recovery Is Sweet

  9. E-Marketing Today • Power shift from sellers to buyers • Marketing fragmentation: mass market to one customer • Death of distance • Time compression • Knowledge/database management is key • Marketing and technology: an interdisciplinary focus • Intellectual capital is important resource

  10. Consumer Control • New technologies such as personal video recorders (PVRs) will increase consumer control. • Convergence of television, radio, print, etc. • Customer-controlled entertainment, and shopping on demand.

  11. Refined Metrics • Internet provides great deal of data, not all of which is very useful. • Tracking customer acquisition cost (CAC) and other key metrics is a critical marketing function still in its infancy. • Future metrics will provide better measures of performance, return on investment, etc.

  12. Metric Definition/formula Online Averages CPM Cost Per Thousand Impressions CPM = [Total Cost  (Impressions)]  1000 $7 to $15 for banners1 $75 and $200 for e-mail ads2 $20 and $40 for e-mail newsletter2 Click-through rate (CTR) Number of clicks as percent of total impressionsCTR = Clicks  Impressions 0.3% - 0.8% for banners3,5 2.4% rich media ads5 3.2% - 10% opt-in e-mail3,9 Cost Per Click (CPC) Cost for each visitor from ad click CPC = Total Ad Cost  Clicks Varies widely Google.com ranges from a few cents to a few dollars Conversion Rate Percent of people who purchased from total number of visitorsConversion Rate = Orders  Visitors 1.8% for Web sites6 5% for e-mail9 Customer Acquisition Cost (CAC) Total marketing costs to acquire a customer Varies by industry $82 for online retail pure-plays; $31 for multi-channel brick and mortar retailers7 IMC Metrics and Industry Averages

  13. Wireless Networking Increases • Cell phones, PDAs and laptops connect to the Internet via wireless modem worldwide. • Starbucks • Hotels and airports • Customers will have information, entertainment and communication when, where and how they want it.

  14. Appliance Convergence • The receiving appliance is separate from the media type. • Computers can receive digital radio and TV. • TV sets can receive the Web. • New types of “smart” receiving appliances will emerge. • Internet refrigerator is many digital appliances in one. • Global position systems (GPS) allow in-car communication and entertainment.

  15. Criterion TV Radio Magazine Newspaper Direct Mail Web Involvement passive passive active active active Interactive Media Richness multi-media audio text and graphic text and graphic text and graphic multi-media Geographic Coverage global local global local varies Global CPM low lowest high medium high medium Reach high medium low medium varies medium Targeting good good excellent good excellent excellent Track effectiveness fair fair fair fair excellent excellent Message flexibility poor good poor good excellent excellent Strengths and Weaknesses of Major Media

  16. E-Marketing 4/EJudy Strauss, Adel I. El-Ansary, and Raymond Frost • Chapter 4: Strategic E-Marketing

  17. 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.

  18. 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.

  19. Level of Commitment to E-Business

  20. Activity-level models • Online purchasing • Order processing • E-mail • Content publisher (brochureware) • Business intelligence • Online advertising • Online sales promotion • Pricing strategies

  21. Business Process-Level Models • Customer relationship management (CRM) • Knowledge management • Supply chain management • Community building • Affiliate programs • Database marketing • Enterprise resource planning (ERP) • Mass customization

  22. Enterprise-Level Models • E-commerce • Direct selling • Content sponsorship • Portal • Online broker • Exchange • Auction • Metamediary • Purchasing agent • Virtual mall

  23. Pure Play Model • A Pure Play is a business that began on the Internet. • Top level of the E-Business pyramid. • Examples: E*Trade, eBay, Yahoo! • Most dot-com crash failures were pure plays.

  24. Performance Metrics • Performance metrics are specific measures designed to evaluate the effectiveness and efficiency of operations. • The Balanced Scorecard provides a framework for understanding e-marketing metrics. • Four perspectives: customer, internal, innovation and learning (growth), and financial

  25. E-Marketing 4/EJudy Strauss, Adel I. El-Ansary, and Raymond Frost Chapter 3: The E-Marketing Plan

  26. Seven-Step E-Marketing Plan • Situation analysis • E-Marketing strategic planning • Plan objectives • E-Marketing strategy • Implementation plan • Budget • Evaluation plan

  27. Step 1: Situation Analysis • Environmental factors • Legal factors • Technological factors • Market-related factors • SWOT analysis • Strengths • Weaknesses • Opportunities • Threats

  28. SWOT Analysis Leading to E-Marketing Objective 3-8

  29. Step 2: E-Marketing Strategic Planning • Market and product strategies, called Tier 1 tasks or strategies, are outcomes of strategic planning. • Segmentation • Targeting • Differentiation • Positioning • Marketers conduct analyses to determine strategies. • Market opportunity analysis • Demand analysis • Segment analysis • Supply analysis

  30. Step 3: Objectives • Objectives are typically related to task, measurable quantity and timeframe. • Most e-marketing plans seek to: • Increase market share • Increase sales revenue • Reduce costs • Achieve branding goals • Improve databases • Achieve customer relationship management goals • Improve supply chain management

  31. Step 4: E-Marketing Strategies • Marketers craft strategies for the 4 P’s and relationship management to achieve plan objectives. • Product strategies • Pricing strategies • Distribution strategies • Marketing communication strategies • Relationship management strategies • These are referred to as Tier 2 tasks or strategies.

  32. Steps 2, 3, and 4 of the E-Marketing Plan

  33. Step 5: Implementation Plan • Tactics are used to achieve plan objectives • Marketing mix (4 P’s) tactics • Relationship management tactics • Marketing organization tactics • Information-gathering tactics

  34. Step 6: Budget • The plan must identify the expected return from marketing investments. • Revenue forecast • Intangible benefits, such as brand equity • Cost savings • E-Marketing costs • Technology • Site design • Salaries • Other site development expenses • Marketing communication

  35. Step 7: Evaluation Plan • Marketing plan success depends on continuous evaluation. • E-marketers must have tracking systems in place to measure results. • Use the Balanced Scorecard for e-business • Today’s firms are ROI driven.

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