Marketing Planning & the Internet Internet influence on planning processes Internet influence on implementation

The Importance of Strategy To know where you’re going Would you tell me, please, which way I ought to go from here? asked Alice. That depends a good deal on where you want to get to, said the Cat. I don’t much care where, said Alice. Then it doesn’t matter which way you go, said the Cat. (Carroll, AAinW) To not get there alone With others in the organization Profitably… To outlast your competition

Types of Planning Strategic Planning (where do you want to go?) Firm-level thinking Overarching goal of long-run survival Relationship of firm to environment Marketing Planning (how are you going to get there?)  Strategic marketing Product/market scope of a business Where, when and how to compete Marketing management (what do you have to do to follow that path?) ==> marketing plan (set of tactics)

The Role of Strategic Marketing Within an SBU Across the PLC For the WWW Internet complicates planning Internet time issues Global reach issues (new segments) Convergence issues (online and offline)

The Purpose of Planning Two primary activities Defining opportunities and objectives “What should we do?” Leveraging resources “How should we do it?” Goal of competitive advantage Profitable, Unique, Sustainable

Competitive Advantage and the Internet Defining opportunities (Planning) Consumers Competition Conditions (environment, company, technology) Leveraging resources (Implementation) Content + Channel + Communication Virtual Value Proposition

The Shape of Marketing Planning STRATEGY MARKETING PROCESSES BUSINESS MODEL PLANNING DOING

The Internet Affects Planning Motivation for planning Processes for planning Outcomes of planning Objectives (So, what’s your strategy?) Business model (OK, how’re you going to do that?) The e-Business Activity Pyramid

The Internet Affects Implementation Change issues From revolution to evolution Changing technologies Changing customers and companies Convergence issues (when worlds collide) Customerization (when/how to customize) Communities (need for social interaction) Channels (managing multiple sources) Competitive Value (defining benefits) Choice (demanding, powerful consumers)

What’s Your Model? Many web business models: simplify… Product focus Brand image Product enhancement Revenue focus Sales increase Other revenue…

Building a better model Key ingredients Traditional models Customer benefits Delivery architecture Revenue stream Web-based effect Customer-company interaction New targets, self-segmentation Relationships (1:1) Customer Relationship Management (CRM)

The Value Proposition Product innovation focus Image (brand building) http://disney.go.com/park/homepage/today/flash/index.html?clk=1004398 Incentive (cost benefits) Improvement (neat extras)http://www.pg.com/docYourhome/docCrest/directory_map.html;$sessionid$GK1EIJAAAGCHNTCHEC1SQ1Q

The Customer-Company Interaction The value of information Profiling Personalization The value of intermediaries The value of results Trust Loyalty

The Infrastructure Value Chain Configuration Strategic partnerships and alliances Firm-level assets Tangible (Facilities, cash, equipment) Intangible (IP) Human (Intellect, skills)

The Revenue Stream Revenue focus Traditional (consumer pays) Sales (marketer and consumer) Usage-based fees Content “rental” (subscription fees) Less traditional (marketer pays) ABC’s (Alliances, banners, content sponsorship) Commissions and click-through’s

Uncovering the Value Proposition Defining opportunities Marketing research (next class) Understanding consumers Understanding competitors Understanding conditions (internal and external) Leveraging resources: implementation and control (after next class, plus 3) Marketing management with a twist New resources: content, channel, communication