1. E-Marketing Strategy

2. ObjectivesYou will be able to: Explain the importance of strategic planning, strategy, e-business strategy, and e-marketing strategy. Identify the main e-business models at the activity, business process, and enterprise levels. Discuss the use of performance metrics and the Balanced Scorecard to measure e- business and e-marketing performance. 3. The Amazon Phenomenon3 "Online, you can build a store that cantexist in real life--if we printed a catalog ofwhat we offer, it would be the size of sevenNew York City phone books." Jeff Bezos 4. Amazon.comsValue Proposition4 Traditional Bookstore Amazon.comMore than 2,000,000 Less than 100,000 titlestitles Focus on best-sellersBroad offering on hard to find titles Very long reorder timesMax wait 6 weeks Little information about Plenty of information, books reviews, etc.Heavily discounted Marginal discounts prices (up to 40% off) One-to-Many marketingOne-to-One marketing 5. Amazon.com5Founded in 1995 as an online retailer. Did not become profitable until Q4 2001. In 2007, generated $14.8 billion in net sales,$476 million in net income.Leveraged its competencies into different e- business models. Established e-commerce partnerships withTarget, Macys, and others. Provided developer services. Created the first affiliate program. 6. Amazon.com, cont.6Amazons success is based on selection, lower prices, product availability, innovative technology, and better product information.CEO Jeff Bezos is not interested in expanding to the physical world.Which of Amazons core competencies do you think will drive its strategy in the future? 7. Strategic Planning7A managerial process to develop and maintain a viable fit between the organization and its changing market opportunities.Process identifies firms goals for Growth Competitive position Geographic scope Other objectives, such as industry, products, etc. 8. ESP: Environment, Strategy, andPerformanceThe e-marketing plan flows from the organizations overall goals and strategies.The ESP framework illustrates the relationships among environment, strategy, and performance.A SWOT analysis of the business environment (E) leads to the development of strategy (S) and the measurement of performance (P). 9. ESP Framework Legal- Ethical TechnologyInternet E Competition Other Factors Markets SWOTE-Marketing Plan E-Business SStrategy E-MarketingE-Marketing Mix Strategy CRM PPerformance Metrics 10. Strategy10 Strategy is the means to achieve a goal. E-business strategy Strategy that deploys enterprise resources to reach performance objectives, competitive advantages. E-marketing strategy Strategy that capitalizes on information technology to reach marketing objectives. 11. Rationale for e-Business11 Strategic justification fit Alignment with the overall mission Operational justification processimprovement Identifies/quantifies the specific process improvements resulting from the strategy Technical justification synergy Shows how technology will fit and provide synergy Financial justification ROI Examine each metric for opportunities 12. Business Models12 A business model is a method for long-termsurvival and a value proposition for partners,customers, and revenue. E-business models include the use ofinformation technology to achieve long-termgoals. Firm selects one or more models as strategiesto accomplish enterprise goals. 13. Selecting a Business Model13 A firm will select one or more business modelsas strategies to accomplish enterprise goals. Components of business model selections: 1. Customer value2. Scope 3. Price 4. Revenue sources 5. Connected activities 6. Implementation 7. Capabilities8. Sustainability 14. Key Questions regarding e-14 Business Are the business models likely to change inmy industry? What does the answer to this question meanto my company? When do I need to be ready? How do I get there from here? 15. Activity-Level Models1. Order processing2. Online purchasing3. E-mail4. Content publisher5. Business intelligence (BI)6. Online advertising and public relations (PR)7. Online sales promotions8. Dynamic pricing strategies online 16. Business Process-Level Models1. Customer relationship management (CRM)2. Knowledge management (KM)3. Supply chain management (SCM)4. Community building online5. Database marketing6. Enterprise resource planning (ERP)7. Mass customization 17. Enterprise-Level Models1. E-commerce, direct selling, content sponsorship2. Portal3. Social networking4. Broker models Online exchange, hub Online auction5. Agent models Manufacturers/selling agents Shopping agent Reverse auction 18. Pure Play ModelsPure plays are businesses that began on the internet. They represent the top level of the E-Businesspyramid.Pure plays face significant challenges. They must compete as new brands. They may need to take customers away fromestablished businesses.Some pure plays have redefined industries: E*Trade, eBay, Yahoo!, MySpace. 19. Performance Metrics19 Performance metrics are specific measuresdesigned to evaluate the effectiveness andefficiency of operations. Performance metrics: Provide measurable outcomes. Must be easy to understand and use. Must be actionable. Can be utilized for employee evaluations. 20. Web Analytics Web analytics, commonly called metrics, is the studyof user behavior on Web pages. Metrics measure activities such as: Click throughs Visitor patterns Length of time spent on a page or site Conversions to sales Web analytics software helps companies analyzedata on server logs for marketing purposes. What does Google offer in this area? 21. Social Engagement MetricsOnline measurement also includes metrics for evaluating Web 2.0 technologies.Social engagement metrics allow marketers to know how visitors participate, not just whether they landed on a page. Time spent viewing a video, playing a game,or listening to music. Writing a comment on a blog. Downloading a MP3 file, ring tone, or othercontent. 22. The Balanced Scorecard22 The Balanced Scorecard provides a frameworkfor understanding e-marketing metrics. The Balanced Scorecard provides 4perspectives. Customer perspective Internal perspective Learning and growth perspective Financial perspective 23. Strategy Map23 24. The Balanced Scorecard: Customer Perspective24 The customer perspective scorecardincludes ways to measure goals such ascustomer loyalty, satisfaction, appropriatenessof target markets, etc. Loyalty and satisfaction measures may include percentage of visitors who return to site and time between visits. Transaction measures may include measurement of unique visitors, online sales abandoned, etc. 25. The Balanced Scorecard: Internal Perspectives25 The Internal perspective scorecard includesways to measure goals related to the quality ofonline services. Quality of online technical help such asamount of time to answer e-mail Web page loading time Inventory levels, inventory turns 26. The Balanced Scorecard: Learning and Growth Perspectives26 The learning and growth perspectivescorecard includes ways to measure goalsrelated to online service innovation andcontinuous improvement. Average time from concept to start Speed to match a rivals site Time between site relaunches 27. The Balanced Scorecard:Financial PerspectivesThe financial perspective scorecard includes ways to measure financial goals. Sales growth and market share Return on invested capital Average order value Individual customer profit 28. Summary28 This week, ask yourself the following questions: What is Strategy? How do you pursuestrategy in e-Business? What are e-Business Models? What is the Balanced Scorecard and why do Icare?