1. E-Marketing Judy Strauss, Adel I. El-Ansary, and Raymond Frost – 4/E
©2006 Prentice Hall
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/E Judy Strauss, Adel I. El-Ansary, and Raymond Frost
©2006 Prentice Hall
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, and E-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
Internet across the globe: (source : Jun 2009)

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

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. Cost Per Thousand Impressions
Metric
Definition/formula
Online Averages
CPM
Cost Per Thousand Impressions
CPM = [Total Cost  (Impressions)]  1000
$7 to $15 for banners1
$75 and $200 for ads2
$20 and $40 for newsletter2
Click-through rate (CTR)
Number of clicks as percent of total impressions CTR = Clicks  Impressions
0.3% - 0.8% for banners3,5
2.4% rich media ads5
3.2% - 10% opt-in 3,9
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 visitors Conversion Rate = Orders  Visitors
1.8% for Web sites6
5% for 9
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
Criterion TV
Radio
Magazine
Newspaper
Direct Mail
Web
Involvement
passive
active
Interactive
Media
Richness
multi-media
audio
text and graphic
Geographic
Coverage
global
local
varies
Global
CPM
low
lowest
high
medium
Reach
Targeting
good
excellent
Track effectiveness
fair
Message flexibility
poor
Strengths and Weaknesses of Major Media

16. Chapter 4: Strategic E-Marketing
E-Marketing 4/E Judy Strauss, Adel I. El-Ansary, and Raymond Frost
©2006 Prentice Hall
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.

20. Level of Commitment to E-Business

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

22. 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

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

24. 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.

25. 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

26. E-Marketing 4/E Judy Strauss, Adel I. El-Ansary, and Raymond Frost
©2006 Prentice Hall
Chapter 3: The E-Marketing Plan

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

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

29. SWOT Analysis Leading to E-Marketing Objective
Opportunities
Threats
Hispanic markets growing and untapped in our industry.
Save postage costs through marketing.
Pending security law means costly software upgrades.
Competitor X is aggressively using e-commerce.
Strengths
Weaknesses
Strong customer service department.
Excellent Web site and database system.
Low-tech corporate culture.
Seasonal business: Peak is summer months.
E-Marketing Objective: $500,000 in revenues from e-commerce in one year.
©2006 Prentice Hall
3-8

30. 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

31. 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

32. 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.

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

34. 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

35. 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

36. 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.