EMarketing Planning and Strategies

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E-Marketing Planning and Strategies

• Gary Akehurst

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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

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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

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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

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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

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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

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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
  inward-looking resource-based view and an
  outward-looking view of market and selling
  opportunities
• it involves consideration of the interaction of
  three key variables external environment,
  organisation goals and strategies

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E-Marketing Planning and Strategies
1 objectives 2 situation review 3
strategies and plans 4 action
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 action products,
prices, promotion, distribution
vision
corporate objectives
marketing audit
SWOT analysis
formulate strategies
forecasts
budgets
Implementation programme
control
Performance review and evaluation
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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

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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

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E-Marketing Planning and Strategies
Environment-strategy-performance model
E
Legal-ethical Technology Competition Other factors
markets
internet
SWOT
S
E-marketing plan
E-business strategy
E-marketing strategy
E-marketing mix CRM
P
Performance metrics
Source Strauss, El-Ansary Frost (200623)
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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

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E-Marketing Planning and Strategies

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

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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
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E-Marketing Planning and Strategies
Factors influencing company marketing strategies
Technical/ physical environment Soc
ial/ cultural environment
Demographic/ economic environment P
olitical/ legal environment
Marketing and sales information system
Marketing and sales intermediaries
suppliers
product
Target customers
place
price
Marketing planning system
promotion
publics
publics
competitors
Marketing organisation and implementation system
Marketing sales organisation system
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E-Marketing Planning and Strategies
Factors influencing competitive success
Environmental factors e.g. rate of technological
change nature of competition intensity of
competition
Strategic factors e.g. long-term
objectives strategic time horizon product-market
strategy
Organisational factors e.g. size structure culture
innovation capability
Managerial factors e.g. communication attitudes le
adership style
Marketing factors e.g. use of market
research customer service product quality
Business Performance
Source after Baker Hart (1989)
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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

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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 e-commerce
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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

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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

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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

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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

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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)

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E-Marketing Planning and Strategies

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

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E-Marketing Planning and Strategies
Deliberate and emergent strategies
Intended strategy
Deliberate strategy
Realised strategy
Unrealised strategy
Source Baker, M.J. (2000) Marketing strategy and
management, (3rd Ed), Basingstoke Macmillan
Emergent strategy
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E-Marketing Planning and Strategies
Unpredictable factors
Intended strategy
Course plotted
Desired objective
Source Baker, M.J. (2000) Marketing strategy and
management, (3rd ed), Basingstoke Macmillan
Predictable factors
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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

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E-Marketing Planning and Strategies
Basic Conditions
Demand price elasticity substitutes rate of
growth cyclical, seasonal
Supply raw material technology product
durability value/weight
The structure-conduct- performance paradigm
Market structure number of buyers and
sellers product differentiation barriers to
entry cost structures vertical integration diversi
fication
Public Policy taxes and subsidies regulation price
controls antitrust information
Conduct pricing behaviour product strategy and
advertising research and innovation plant
investment legal tactics
Performance production and allocative
efficiency progress, full employment equity
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E-Marketing Planning and Strategies
Threat of new entrants
Porters five forces
The industry jockeying for position
among current competitors
Bargaining power of suppliers
Bargaining power of customers
Threat of substitute products or services
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E-Marketing Planning and Strategies
Planning Implementing Controlling
corporate planning division planning business
planning product planning E-marketing planning
organising implementing action
Measuring results diagnosing results taking
corrective action
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E-Marketing Planning and Strategies
External environment (opportunities and threats)
Goal formulation
Strategy formulation
Business mission
SWOT Analysis
Internal environment (strength and weaknesses
analysis)
Programme formulation
implementation
Business strategic planning process
Feedback and control
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E-Marketing Planning and Strategies

• 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?

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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
• strategy
• performance objectives

Specification of present strategy
Analysis of past performance
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E-Marketing Planning and Strategies
Corporate business planning
Internet marketing plan (sub-set of marketing
plan)
Design website
Control, review, modify
Implement website
Monitor website
Source adapted from Chaffey et al (2000 124)
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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 E-Marketing
• 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