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3. CM2# eMarketing strategy & market research
Transcript of 3. CM2# eMarketing strategy & market research
an approach by which applying traditional marketing methods support marketing and business objectives.
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
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
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
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
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.)
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
objectives should be sufficiently detailed, set up to measure real world problems and opportunities
objectives’ attributes should be measured quantitatively/ qualitatively
objectives should improve performance
objectives should be related to a particular problem
objectives should be constrained through time
- 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!)
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
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
Sourcing content etc.
Multichannel distribution strategy
are the mechanisms by which products are directed to consumers either through intermediaries or directly
Multichannel communications strategy
Online communications mix and budget
defined as critical success factors that determine whether business and marketing objectives are met
(size of visitor base, visitor acquisition cost and visitor advertising revenue)
(Consumer base, consumer acquisition costs, consumer conversion rate, number of transaction per consumer etc)
(Similar to conversion measures)
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)
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
- 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)
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)
- the stages each consumer will pass through in a long- term relationship though selection, acquisition, retention and extension
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 )
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
. Attract new and existing consumers to online presence using social media marketing, direct mail etc.
. 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
. Capture consumer information and maintain relationship using profiling forms or touchpoints
Maintain dialogue using online communication e.g. send tailored message
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
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
- web-based personalisation involves delivering customised content for the individual, through web pages, e-mail or push technology.
web-based personalisation involves delivering customised content for the individual, through web pages, e-mail or push technology.
Is satisfaction equal to loyalty?
– 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
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.
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’
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.
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
Cost reductions from:
reduced time in consumer service
reduced printing and distribution cost of marketing communications
enhanced brand image
improved marketing communicants
improved consumer service
meeting consumers expectations
feedback from consumers
Benefits of using E-CRM include:
the desire on the part of the consumer to continue to do business with a given supplier over time
Principles of permission marketing
- recency of consumer action e.g. purchase, site visit, account access etc., it helps to target most responsive consumers
– the number of times an action is completed in a period of consumer action e.g. purchase, email response.
– 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)
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.)
Qualitative vs. Quantitative data
Online research methodologies