E-Commerce and Direct Marketing Plan

1. E-Commerce and Direct Marketing Plan Checklist to Success

2. Step One – Executive Summary • be no more than 10% or so of the length of the main report • be written in business/professional style • consist of short and concise paragraphs with a title sentence and 2-3 support phrases • Begin with a summary of the purpose of the project • Be ordered with discussion similar to primary document • only include material present in the main report– no winging it! • Summarize findings/recommendations • provide a justification for findings • Include a conclusion • Be inserted immediately following the table of contents

3. Step Two - Situation Analysis • Internal • Covers the four P’s – product, place, distribution and pricing • External • Marketplace and marketing environment • Economy • Legal • Competition • ** Discusses the importance of the information and includes some discussion of analysis

4. Target Group Profiles & SWOT Analysis – Traditional Approach • Who are you wanting to communicate with and what do you want the response to be? • Potential Variables • Demos • Geographics • Behavioristics • Psychographics • Intended Usage • Usage Rates • Occasion? • Opportunities and Issues Analysis • SWOT

5. Market Segmentation • Markets are not unitary • Various customer needs exhibited • Differentiation enables firms to match their products to meet the needs of customers in each segment • Can increase revenues by modifying goods to better meet expectations and needs

6. Marketing Products from Product to Brands Marketing consumer research Product Design Consumer Augmented Product Consumer Experience Core Product Create Expectations Trust Affection Loyalty Reputation Branded Product Differentiating features Quality Support Price Reliability

7. Major Types of Online Market Segmentation and Targeting • Behavioral – based on behavior in the market, observe behavior in the market Web site owners and members of advertising networks can dynamically assign users to groups, and merge their behavioral information with other data. Using preferences and mentions on social networks to assign ads to individuals and network groups of friends • Demographic – using age, religion, and other demos to segment. • On the Internet, using registration data or other self-revelations. Sites visited are also a proxy for age. (i.e., music sites tend to be visited by younger consumers.

8. Major Types of Online Market Segmentation and Targeting • Psychographic – using common interests, values, opinions along with personality, attitude and lifestyle preferences to segment customers into groups. • On the Internet websites can substitute for direct measurement e.g., the fashion web sites visited by consumers reflect a self-chosen lifestyle and values.

9. Major Types of Market Segmentation and Targeting • Technical – using information gathered by a shopping technology as a basis for segmentation. Nearly everyone who shops at the malls owns a car. • On the Internet, each consumer visit generates a recorded of the user’s domain, IP address, browser, computer platform, and connection type as well as the URL the user linked to the site from, and the date and time. People who connect via broadband media, for instance, are much more likely to download music and video from the Internet.

10. Major Types of Market Segmentation and Targeting • Contextual – using the context of the event, or the content of an event, as a basis for segmentation. People who attend rock concerts tend to purchase music, CDs as well. On the Internet, people who read online Wall Street Journal are very good targets for financial service advertising. • Search – using consumers’ explicitly expressed interest at this moment to segment and target. Perhaps the simplest of all segmenting, search direct response follows the ageless maxim “sell them what they want.”

11. Marketing StrategiesTarget Marketing • Differentiation • Differentiated Marketing, Niche Marketing (focused) • Mass Market Marketing • Positioning – perceptual mapping • Uniqueness

12. Goals and Objectives • Quantitative • Build lead database • Acquire new customer • Cross-sell • New product introduction • Prospect cost per lead • Acquisition cost • Retention • Win back cost • ROI – return on investment (total or related to e-commerce and direct marketing) • Qualitative • Increase Customer Satisfaction, enhance brand satisfaction

13. Tactics • Goal • To win the war • Objective • To win the war in twelve months • Strategy – an idea of how the goal could be achieved • Divide and Conquer • Tactics – action to execute the strategy • CIA spies gather intelligence • Navy Seals knock out enemy communications • Paratroopers secure the airport

14. Test Plan • Test your media selections • Do you reach the customers you anticipated? • Does your offer generate responses? • Do you visuals tell the story, capture attention? • Copy – is it easily comprehended and include relevant information?

15. Budget/Financial • How much does your media cost? • Placement, reach, CPM, quantity discounts? • BEP ?

16. E-Commerce and Direct Marketing Strategy & Campaign Plan Checklist • Objectives • Primary (sales, response) • Secondary (brand awareness, familiarity) • Marketing Message – “The Promise” • Product/Service Description – benefits, benefits, benefits • Customer Problem Creative Must Solve • Media Plan • Media Mix – when, where and how will you deliver the message • Budget – frequency and placement costs

17. E-Commerce and Direct Marketing Strategy & Campaign Plan Checklist • Creative Strategy – Know your audience interactive approach with media selections • Offers and Call to Action – hard offers, soft offers • Direct Marketing Essentials – urgency, ways to respond, messages/affiliation to reduce risk in mind of consumer • Copy/Layout • Legal – know FTC, FDA and FCC advertising guidelines, disclaimers and self-regulation

18. Fundamentals • The right offer to the right person at the right time • Aperture, problem solution • Relevancy and personalization are ways to win better response in direct marketing • Test, test, test • Track, track, track