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3. CM2# eMarketing strategy & market research

Awesome template but don't use it with Chrome... Or it may crash ! (sorry)
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Ewelina Lacka

on 18 February 2016

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Transcript of 3. CM2# eMarketing strategy & market research

Consumer Management 2

Marketing Strategy
an approach by which applying traditional marketing methods support marketing and business objectives.

vs.

eMarketing Strategy
an approach by which applying digital technology platforms support marketing and business objectives.

BOTH Marketing strategy and eMarketing strategy;
Provide a future direction to marketing activities
Involve analysis of the organisation’s external environment, internal resources and capabilities to inform strategy
Define marketing objectives that support business objectives
Involves selection of strategic options to achieve marketing objectives and create sustainable differential competitive advantage
Include strategy formulation to address typical marketing strategy options such as the target markets, positioning and specification of the marketing mix
Help identify which strategies NOT to pursue
Specify how resources will be deployed and how the organisation will be structured to achieve the strategy

eMarketing strategy development process
Strategic approaches

Strategy process model
is a framework for approaching strategy development. It provides logical sequence of steps to follow to ensure inclusion of all key activities of strategy development and implementation.

The strategy development and implementation activities are coordinated through a marketing plan, and the process of creating it is known as
marketing planning


Marketing planning
is a logical sequence and series of activities leading to the setting of marketing objectives and the formation of plans for achieving them.

Strategic marketing plan; three key areas:

Identification of changes to competitive forces in micro- environment and macro-environment which will influence consumer demand for online experiences and products

Developing value proposition for consumers using online services as part of their buying process

Definition of the technology infrastructure and information architecture to deliver these value proposition as a consumer experience

SOSTAC planning framework
Situation analysis
is a collection and review of information about an organisation's internal process and resources and external marketplace factors in order to inform strategy definition

Situation analysis involves:

Consideration of the immediate competitive environment including consumer demand and behaviour, competitor activity, etc

Investigation of the wider environment in which company operates, including economic development, government regulations etc.

Assessment of:internal processes, resources capabilities,




,





Internal audit for eMarketing

Internal audit
involves reviewing the contribution of digital channels and their effectiveness in meeting marketing goals.

Internal audit involves:

Assessment of business effectiveness (the contribution of the site directly or indirectly to sales and profit)

Assessment of marketing effectiveness (the contribution of the marketing activities to sales, consumer retention and loyalty etc.)

Evaluation of digital marketing effectiveness (measures to assess the way in which the website is used and the characteristics of its visitors e.g. unique visitors, repeat visitors, duration of visit etc.)

Resource analysis

Resource analysis
is a review of the technological, financial and human resources of an organisation and how they are utilised in business process.

Financial resources – the cost components of running an online presence, including site development, promotion and maintenance

Technology infrastructure resources- availability and performance of the website and service level agreements with the ISP.

Human resources – availability of service and fulfillment resources for answering consumers queries and dispatching goods

Structure –the responsibilities and control mechanisms used to coordinate Internet marketing across different departments and business units.

Strengths and weaknesses- SWOT analysis

Stage models of the eMarketing capability

5 Levels of eMarketing

No website or social presence

Company places an entry in a directory website that lists company name to make searching the web aware of the existence e.g. www.yell.co.uk

Simple static website created containing basic information e.g. company contact and product information

Simple interactive site where users are able to search the site and make queries to retrieve information such as product availability and pricing

Interactive site supporting transactions with user

Fully interactive site providing relationship marketing with individual consumers and facilitating the full range of marketing functions relevant for the sector


eMarketing objectives
Specific
objectives should be sufficiently detailed, set up to measure real world problems and opportunities
Measurable
objectives’ attributes should be measured quantitatively/ qualitatively
Actionable
objectives should improve performance
Relevant
objectives should be related to a particular problem
Time-related
objectives should be constrained through time

Strategy formulation

Strategy formulation
- generation, review and selection of strategies to achieve strategic objectives

9 decisions to make
Market and product development strategies

Business and revenue models strategies



Transactional e-commerce sites, we can sell space or run co-branded promotions on site or through their email newsletters or lists to sell access to their audience to third parties.

Retailers or media owners can sell-on white-labeled services through their online presence such as ISP, e-mail services or photo- sharing services

Companies can gain commission through selling products which are complementary (but not competitive to their own!)

Revenue model
describes methods of generating income for an organisation
Target marketing strategy
Target marketing strategy-
evaluation and selection of appropriate segments and development of appropriate offers

Segmentation strategy has to be based on 5 elements:

Identify consumer profile-based demographic characteristics

Identify consumer lifecycle groups

Identify behaviour in response and purchase value

Identify multichannel behaviour

Tone and style preference

Positioning and differentiation strategy
Differential advantage
a desirable attribute of a product offering that is not currently matched by competitor offerings

Online value proposition (OVP)
a statement of the benefits of online services reinforces the core proposition and differentiates from an organisation’s offline offering and those of competitors

Developing online value proposition involves:
Developing online content and service and explaining them through messages which
(1) Reinforce core brand proposition and credibility
(2) Communicate what a visitor can get from an online brand that they can not get from the brand offline
Communicating those messages to all appropriate online and offline consumers

Benefits of online value proposition:
It helps distinguish an site form its competitors
It helps provide a focus to marketing efforts so that company staff are clear about the purpose of the site
It can be linked to the normal product propositions of a company or its product

Consumer engagement and social media strategy
Consumer engagement strategy-
a strategy to encourage interaction and participation of consumers with a brand though developing content and experiences with the aim of meeting commercial objectives

Social media strategy
-a definition of the marketing communications used to achieve interaction with social network users to meet business goals.

Social media strategy focuses on:
The target audience
Content preferences of the target audience
Strategic business goals
Priority of content type
Integration of social channels
Content frequency
Sourcing content etc.

Multichannel distribution strategy
Distribution channels
are the mechanisms by which products are directed to consumers either through intermediaries or directly

Multichannel communications strategy
Online communications mix and budget
Performance drivers
defined as critical success factors that determine whether business and marketing objectives are met



Those include:

Attraction
(size of visitor base, visitor acquisition cost and visitor advertising revenue)
Conversion
(Consumer base, consumer acquisition costs, consumer conversion rate, number of transaction per consumer etc)
Retention
(Similar to conversion measures)
Organisational capabilities
10 steps to assess organisational capability:
1. Senior management commitment
2. Digital channel contribution
3. Brand alignment
4. Marketplace analysis
5. Technological infrastructure
6. Vision and goals
7. Strategy and planning
8. Review capability of marketing resources to deliver efficient, integrated cross- channel communications
9. Refine management information and reporting
10. Identify and implement ‘quick wins’

Consumer Relationship Marketing

Consumer Relationship Marketing (CRM)
– a marketing-led approach to building and sustaining long-term business with consumers

One- to- one marketing
an unique dialog occurring between a company and individual customer (or groups of consumers with similar needs)

vs
Electronic Consumer Relationship Management (E-CRM)
– using digital communications to maximise sales to existing consumers and encourage continued usage of online services through techniques including database, personalised web messages, consumer service, email and social media marketing

Social Consumer Relationship Management (Social CRM)
the process of managing consumer-to-consumer conversations to engage existing consumers, prospectus consumers and other stakeholders with a brand and to enhance consumer-relationship management

Consumer engagement
- repeated interactions that strengthen the emotional, psychological or physical investment a consumer has in a brand. It is used to maximise consumer value through using computer interactions to lead to more profitable relationships

Consumer engagement can be measured both online and offline on the basis of:

Involvement (e.g. websites visits, time spent etc.)
Interaction (e.g. comments on blogs, quality/ frequency of written blogs etc.)
Intimacy (e.g. sentiment tracking etc.)
Influence (e.g. content forwarded to friends etc.)



Targeting more cost-effectively ( the marketer will target only those consumers who visited a website and express an interest in its products by registering their name and address)

INBOUD MARKETING
the consumer is proactive and effectively seeking out a solution and interactions with brands are attracted through content, search and social media marketing


Mass customisation of the marketing messages (the marketer can send tailored messages to individual consumers or smaller consumer groups)

Increased depth and breath of information and improve the nature of relationships (the marketer can supply more information to consumer)

Deeper consumer understanding and more relevant communications can be delivered through a sense and respond approach

SENSE AND RESPONSE COMMUNICATIONS
– delivering timely, relevant communications to consumer as part of a contact strategy

Lower cost (the marketer can contact consumer by e-mail )

Delivering loyalty programmes (marketer can offer loyalty schemes)

Opportunities for gamification (the marketer can involve game-based and approaches to engage the consumer to award them for their achievements)

Marketing applications of E-CRM

Sales force automation (it is possible to record and arrange consumer visits)

Consumer service management (it is possible to respond to consumers’ queries through web self-service)

Managing the sales process (it s possible to record the sales process)

Consumer communications management (it is possible to manage communications integrated across different communications channels)

Analysis (it is possible to analyse DATA and understand consumer behaviour and optimise the marketing mix)


Personal and profile data (e.g. contact details, demographic information )

Transaction data (e.g. product purchased, location)

Communications data (e.g. inbound enquirers)

Consumer lifecycle
- the stages each consumer will pass through in a long- term relationship though selection, acquisition, retention and extension

5Is model:

Identification (identify and understand consumers’ characteristics)

Individualisation (identify consumer needs and tailor your offer)

Interaction (engage in dialogue with consumer )

Integration (integrate your activities across the company )

Integrity (build relationship with consumer based on trust and maintain it effectively )

Permission marketing

The consumer MUST agree to be involved in an organisation’s marketing activities, usually as a result of an incentive

stages of permission –based online relationship building

STAGE 1
. Attract new and existing consumers to online presence using social media marketing, direct mail etc.

STAGE 2A
. Incentives visitors to action using:
- lead generation offer- offered in return for consumers providing their contact details and characteristics
- sales generation offer – encourage product trial

STAGE 2B
. Capture consumer information and maintain relationship using profiling forms or touchpoints

STAGE 3
Maintain dialogue using online communication e.g. send tailored message

STAGE 4.
Maintain dialogue using offline communication

-anticipated, -relevant -personal



1. Consider selective opt-in to communication - offer choice in communications preferences to the consumer to ensure more relevant communication, communications preferences options include
- content: news, products, offers etc.
- frequency: weekly, monthly etc.
- channel: e-mail, social network etc.
- format: text or HTML

2. Create a common consumer profile- develop a structured approach to consumer data capture.

3. Offer a range of opt-in incentives

4. Do not make opt-out too easy – try to encourage consumer to update profile

5. Watch, do not ask- monitor consumer behaviour to understand it

6. Create an outbound contact strategy – develop effective contact strategy


Developing effective contact strategy

Contact strategy
definition of the sequence and type of outbound communications required at different points in the consumer lifecycle

The contact strategy should indicate the following:

Frequency; minimum once per quarter/ maximum once per month

Interval; minimum one week gap between communications

Content and offers; limit or achieve certain number of prize draws or information-led offers

Links; links between online and offline communication

A control strategy; control mechanisms




Personalisation and mass customisation

Personalisation
- web-based personalisation involves delivering customised content for the individual, through web pages, e-mail or push technology.

Mass customisation
web-based personalisation involves delivering customised content for the individual, through web pages, e-mail or push technology.

Is satisfaction equal to loyalty?

Consumer satisfaction
– the extent to which a consumer’s expectations of product quality, service quality and price are met.

Increase in consumer satisfaction should result in loyalty!



Categorizing consumers according to value

consumers who contribute most to the profit, they are likely to purchase high- value products, but they are small portion of the total consumer base

consumers who show potential to become MVC
unprofitable consumers
Lifetime value (LTV)
is the total net benefit that a consumer will provide a company over the total relationship with a company

Product recommendations and propensity modelling

an approach of evaluating consumer characteristics and behaviour and then making recommendations for future products
Create automatic product relationships (e.g. by grouping products previously purchased together, number of times products were purchased together etc. )

Use familiar ‘trigger words’ (e.g. ‘related products’ , ‘recommended for you’ etc.

Allow quick purchase of related products

Sell related products during checkout.

Virtual community
an Internet based forum for special- interest groups to communicate.

Creating community through social networks

Facebook company page/ Google +
Used to engage with the consumer
Used to promote products and services
Provide product information
Attract new ‘fans’

Twitter page
Used to communicate with the consumer
Used to update the status

LinkedIn company pages and groups
Used to maintain professional contacts
Used to promote user’s experience, knowledge etc.

YouTube channel
Engage interactive communication

Types of online communities:

Communities of purpose
; consumers who are going through the same process or are trying to achieve a particular objective, e.g. consumers researching cars at Autotrader etc.

Communities of position
: consumers who are in certain circumstances, stage of life etc. chat for teenagers

Communities of interest
: consumers who share an interest or passion for music, sport etc.


Tangible benefits :
Increased sales from:
new consumers and new markets
existing consumers
Cost reductions from:
reduced time in consumer service
online sales
reduced printing and distribution cost of marketing communications
Intangible benefits:
enhanced brand image
improved marketing communicants
improved consumer service
meeting consumers expectations
feedback from consumers
Benefits of using E-CRM include:
Consumer loyalty-
the desire on the part of the consumer to continue to do business with a given supplier over time
vs
Thank you


Principles of permission marketing
Recency
- recency of consumer action e.g. purchase, site visit, account access etc., it helps to target most responsive consumers

Frequency
– the number of times an action is completed in a period of consumer action e.g. purchase, email response.

Monetary value
– the monetary value of purchase

'The key question is not whether to deploy Internet technology- companies have no choice if they want to stay competitive-but how to deploy it' (Porter, 2001)
eCommunication tools
Market research
Primary vs. secondary research
data is gathered for a particular research topic
(e.g. surveys, focus groups, etc)
existing, published data is used for particular research topic (e.g. databases, statistical data etc.)
www.e-consultancy.com
www.pewinternet.org
www.nielsen.com
social media
blogs
forums
&
Qualitative vs. Quantitative data
Online research methodologies
BIG data
Full transcript