e-Marketing Strategy

Course Instructor - Anurag Hans

anuraghans.iilm@gmail.com

Structure
Figure 1.2: The Books Structure
A. INTRODUCTION
1. Overview 2. Marketing Strategy - Analysis & Perspectives

C. WHERE DO YOU WANT TO BE? B. WHERE ARE WE NOW?

3. Environmental Analysis: Market Information and Intelligence 4. Strategic Marketing Decisions & Choices 5. Segmentation, Targeting & Positioning Strategies 6. Relationship Strategies

E. DID WE GET THERE?

13. Strategy Implementation, Control & Financial/Quantitative Analyses

D. HOW WILL WE GET THERE?

7. Product Innovation & Development 8. Branding Strategies 9. Service Marketing 10. Pricing & Distribution 11. Marketing Communications 12. E-Marketing

F. CONCLUSION
14. Social Marketing & CSR

Introduction

In the general excitement over the Internet, many observers have argued that the old rules about marketing strategy have changed Organisations that treat the Internet as an evolutionary force tend to outperform organisations that see it as revolutionary E-markets are smart Most customers are concerned by convenience rather than price E-marketing is thus more about differentiation than cost

Navigation

Navigation is a term linked to E-marketing: the process of steering between the mass and variety of information in cyberspace However, navigation also occurs in physical commerce. For example, no one reviews all the possible options in buying a shirt or pair of shoes Over the Internet it is possible to search extensively at negligible cost. Navigation and selection occur independently of physical warehousing and distribution and bricks and mortar companies no longer have any special advantages Navigation is the key to profit potential

Navigation Dimensions
Reach

How many customers a business can access and how many products it can offer

Is about whose interest the business represents

Affiliation

Is the depth and detail of information that the business gives the customer and collects about the customer

Richness

Relates to the breadth and depth of the products and services offered

Range

(Wells & Gobeli, 2003)

Critical to decide on what dimension do you want to leverage e-marketing

Loyalty

Acquiring customers on the Web is extremely expensive, so unless companies can lock customers in, they will be faced with the prospect of catering solely to price-sensitive

Customization

Identify
Differentiate Interact Customize

Identify

Being able to locate and contact a number of customers directly, or at least a large chunk of the most valuable ones and understand their behaviour Habits and preferences as well as the addresses, phone numbers

Differentiate

Recognises different levels of value and needs Invaluable for deciding on the best Emarketing strategy in any given situation People will do business with sites that make their lives easier and are prepared to pay a premium

Interact

Hiring an outside service for scanning or data entry Drip-irrigation (asking only one or two questions each transaction) Periodic review of the integrity of the list

Customisation

Choiceboards are on-line systems that interact with customers so that they can design their own goods and services from a menu of features Instead of having to haggle over the price of fixed product lines, the Internet changes commerce and enables consumers to describe exactly what they want Furthermore, suppliers are able to deliver bespoke goods and services without compromise or delay

Communities

Communities enable consumers to communicate with each other The aim is to build differentiation through relationships Communities like Facebook, Orkut and Twitter have started acting as virtual meeting points of e-savvy consumers Exchanges provide brands with free content and consumers appreciate the ability of meeting likeminded people Content and exchanges act like magnets and draw people back frequently and regularly

Conclusion

E-marketing strategy is rooted in the classic elements of the Five Forces and sustainable competitive advantage Any e-marketing strategies should be based on businesses run like bricks and mortar companies using classic metrics like gross margin and size of order However, to achieve e-marketing success it may often be necessary to mentally break down the current business model into its components, and understand which of the current components can be managed better using e-marketing strategies

Strategy Implementation, Control, and Finance/Quantitative Analysis

Course Instructor - Anurag Hans
anuraghans.iilm@gmail.com

Structure
Figure 1.2: The Books Structure
A. INTRODUCTION
1. Overview 2. Marketing Strategy - Analysis & Perspectives

C. WHERE DO YOU WANT TO BE? B. WHERE ARE WE NOW?

3. Environmental Analysis: Market Information and Intelligence 4. Strategic Marketing Decisions & Choices 5. Segmentation, Targeting & Positioning Strategies 6. Relationship Strategies

E. DID WE GET THERE?

13. Strategy Implementation, Control & Financial/Quantitative Analyses

D. HOW WILL WE GET THERE?

7. Product Innovation & Development 8. Branding Strategies 9. Service Marketing 10. Pricing & Distribution 11. Marketing Communications 12. E-Marketing

F. CONCLUSION
14. Social Marketing & CSR

Introduction

Most marketing practitioners spend large amounts of time planning and formulating marketing strategy They endeavour to direct the actions of marketing personnel, the sales force and channel intermediaries, and allocate substantial effort to the organization of marketing activities and human resources Yet less time is given to the fundamental marketing task of controlling, and its related activity, implementation In future a firms marketing success will hinge not so much on having a good strategy, but on how well this strategy is implemented and controlled

Basic Steps in Control

1.

2.

3.

Set standards of performance (these are typically in the form of goals or objectives) Evaluate the reality of what occurs against these steps Take corrective or reinforcing action where required

Competitive Advantage & Control variables

How to measure Customer satisfaction surveys Customer Service Quality studies Satisfaction Difference between expectations and perceptions SERVQUAL Willingness to choose your brand over others Loyalty Surveys Retention studies Customer Loyalty Customer Churn Defection studies Company and competitor's sales Market Share Proportion of total market serviced by a company or no. of units sold Sales Growth % change in sales % costs that are used to produce COGS to sales (Your productivity) no. of units sold Sales-COGS (Indicates Gross Profit margin (Your competitiveness) manufacturing efficiency) Selling, General, Admin Financial Expenses/Sales (Indicates admin Productivity SG&A to sales (Control admin expenses) efficiency) How much profit per rupee of Net Profit margin (How much money do you generate) sales ROE (How investment friendly is your business) Net Profit/Equity ROA (Are you making optimal use of assets) Net profit/Assets Outcome What does it indicate Overall customer satisfaction

Steps in the Control Process

Possible Outcome 1: 15% market share 1. Set Standards Corrective Action

e.g. Marketing Objective is to attain 25% market share

2. Evaluate Standards Against Reality

3. Take Action

Possible Outcome 2:

35% market share

Reinforcing Action

Nature of Control

Annual Plan control looks at the objectives set in the annual marketing plan, evaluates these against the actual results achieved, and takes corrective or reinforcing action when necessary Financial or Expense control considers the financial parameters and objectives set by a firm in its annual marketing plan, and the corrective or reinforcing actions needed to attain these The purpose of strategic control is to ensure that the organization is maximizing the opportunities that exist in its business environment. Strategic control often takes the form of a marketing audit

Customer Life time value (CLTV)

Based on the understanding that it is much more expensive to acquire a new customer rather than retaining an existing customer CLTV is the overall revenues and profits which a customer would give the company over his lifetime association with the company/brand Each customer can have a personal profit and loss account from the perspective of the company Critical to keep the high profit margin customers loyal to the brand

Increasing CLTV

Increasing retention rate, or increasing customer life (i.e. the number of years a customer can remain a customer) Increasing Sales to a Customer, either by increasing the firms share of the customers purchases, or by increasing the customers referral rate Cutting the Costs of serving a customer

Corporate Culture

The Clan culture, which emphasises teamwork and cooperation The Adhocracy culture, which emphasizes entrepreneurship and creativity The Hierarchy culture, which emphasizes order, regulations and rules The Market culture, which emphasizes competitiveness and goal achievement
(Deshpande, Farley and Webster, 1993)

The BCG Matrix

The G.E. Matrix

The Value Chain Analysis