Electronic Marketing

Electronic Marketing Chapter 3Marketing Planning Stage for Online Activities 2004 Joel Reedy and Shauna Schullo

Planning with Electronic Ps • Marketing planning and marketing implementation are last steps in the marketing process • Marketing plan based unfortunately on their own misinterpreted data • Marketers lack the knowledge and skills necessary to initiate a marketing program because they are overwhelmed with marketing data and become confused as to the next step to take • In marketing planning, the marketer draws upon findings of the situation analysis and constructs future activities according to structuring the marketing Ps 2004 Joel Reedy and Shauna Schullo

Planning with Electronic Ps • Marketing on the Web parallels traditional marketing • Tools change…from traditional to electronic resources • Findings of the situation analysis beget the market niche to be filled • Which begets a product need and definition • Manufacturing a brand by fashioning image parameters • A new product offering is formed to: • Identify desired image benefits • Create the product identity • Coordinate image and identity so all marketing materials speak with “one voice” 2004 Joel Reedy and Shauna Schullo

Crafting a Unique Online Image and Identity • Essence is what the marketer’s product or service does for his clientele • With an attractive concept and solid product execution, hopefully the offering cannot be easily duplicated by a competitor • Given a perceived or real uniqueness, the marketer can build a niche strategy online • Establishing a singular benefit sets some companies in an exclusive position 2004 Joel Reedy and Shauna Schullo

Crafting a Unique Online Image and Identity • Electronic marketing considerations start with the product name • Attention should be given to the URL address name so that it is distinctive and readily reminds the user of the product name • What will be your server name, that of your ISP or your own server? • What is the proper domain designation? • Will you use the prefixes in your address? 2004 Joel Reedy and Shauna Schullo

Crafting a Unique Online Image and Identity • Product name continued… • Will you choose to hyperlink to other sites, and will you reciprocate? • What types of hyperlinks will you allow on your pages? • With what types of search engines will you register your Web site address? • Will you print-block your Web pages so that the viewer cannot print your page? 2004 Joel Reedy and Shauna Schullo

Crafting a Unique Online Image and Identity • If the marketer’s strategy is to introduce an existing product to the Web, she can prepare an audit of the advantages and disadvantages of Web exposure • What has made your brand what it is today, and for what reasons do you have a product following? • What attributes does your audience value and why? 2004 Joel Reedy and Shauna Schullo

Crafting a Unique Online Image and Identity • Audit continued… • Which of these benefits do your customers value? • Quality as in durability or reliability? • Faster and friendlier service? • Technicians with high levels of expertise? • On-time service? • Twenty-four hour convenience? • Money-back guarantees? • Twenty-hour tracking service? • Perhaps well-trained and caring store personnel? 2004 Joel Reedy and Shauna Schullo

Crafting a Unique Online Image and Identity • Competencies you can leverage into your online marketing efforts • Accurate product prices on your Web site • Quick replies to e-mail inquiries • Correct policies to service customers fairly • Frequently Asked Questions • Responsive modem connections • Up-to-date product offerings 2004 Joel Reedy and Shauna Schullo

Building the Marketing Plan • The objectives of the online marketing effort are no different from traditional marketing • Objectives are usually set as numeric goals • Percent of market share • A dollar sales volume • A dollar sales quota per sales representative • A percentage or dollar return on investment or asset • A dollar sales volume per territory 2004 Joel Reedy and Shauna Schullo

Building the Marketing Plan • Marketing Direction • Additional sets of objectives can be established • Market target descriptions • Communications objectives • Sales objectives • Media objectives • Public relations objectives 2004 Joel Reedy and Shauna Schullo

Building the Marketing Plan • Having established numeric objectives, the marketer will be able to compare the program’s performance at year’s end • Input into the next year’s planning • How to establish goals? • Review past company performance • Consult current economic literature • Interview fellow staff members • Check with industry associations 2004 Joel Reedy and Shauna Schullo

Building the Marketing Plan • Marketing programs will differ depending on: • Stage of the product life • Level of competition • Size of the sales territory • Type of product entry • Whether the product is a seasonal good or service 2004 Joel Reedy and Shauna Schullo

Selection of Prospect Groups • Investigation of prospect clusters begins now • Segmenting the market: • Geography • Demographics • Psychographics • Behavioral characteristics • Benefits analysis • Develop the product or service positioning strategy • Positioning line 2004 Joel Reedy and Shauna Schullo

Defining the Product or Service • What are some of the categories that are being sold on the Web? • Better • Faster • More convenient • More unique • Lasts longer • Features a better warranty 2004 Joel Reedy and Shauna Schullo

Defining the Product or Service • Specific categories can include: • New or existing products or services • Harder-to-find products • The Web as a delivery vehicle • Information services • Tangible products • Compact packaging • Overnight or two-day delivery • Installation as simple as possible • Online customer service or technical support • Research 2004 Joel Reedy and Shauna Schullo

Defining the Product or Service • Benefits of the Web versus traditional media • Interactive capability of dialog between the viewer and the marketer • Electronic in nature and therefore will be attractive to the technological crowd • 24/7 • Lower cost of media introductions • Availing an existing product or service to an online presence 2004 Joel Reedy and Shauna Schullo

Pricing Knowledge will Become Universal • Consumer will have “perfect knowledge” of the marketer’s price structure • Strategy for protecting quality and profit margins against cutthroat competition • Quality-related information about the product or service • Differentiation between brands within a category • More intense price competition with the infusion of interactive home shopping (HIS) 2004 Joel Reedy and Shauna Schullo

Distribution Decisions • Logistics activities include: • Strategic planning • Transportation • Purchasing • Warehousing • Materials handling • Inventory control • Forecasting 2004 Joel Reedy and Shauna Schullo

Distribution Decisions • Distribution function as an input and an output system in which customer communication is the initial input (or order) that leads to an output (product or service delivery) with continual customer contact to start the process over again • Online tools improve the distribution cycle • Thread and speed • Accuracy • Efficiency runs though the logistics strategy 2004 Joel Reedy and Shauna Schullo

A Targeted Promotional Strategy • Promotion mix • Advertising • Sales promotion • Public relations • Direct marketing • Personal selling • Online media fits best into the direct marketing category, direct marketing may be renamed “interactive marketing” or “cybermarketing” 2004 Joel Reedy and Shauna Schullo

Formulating the Marketing Budget • The last planning activity is to prepare a master marketing budget and rationale • The best method to use for this is the Objective and task method or Zero-based budgeting 2004 Joel Reedy and Shauna Schullo

Electronic Marketing