Chapter 3:
The E-Marketing Plan
Learning Objectives
Overview of the E-Marketing Planning Process
The e-marketing planning process entails three steps: marketing plan creation,
plan implementation, and plan evaluation/corrective action.
Creating an E-Marketing Plan
The e-marketing plan is a blueprint for e-marketing strategy formulation and
implementation. It serves as a road map to guide the direction of the firm,
allocate resources, and make tough decisions at critical junctures.
The Napkin Plan
The idea that many dot.com entrepreneurs were known to simply jot their
A Seven-Step E-Marketing Plan
Seven key planning elements include a situation analysis, e-marketing strategic
planning, the plan objectives, e-marketing strategy, an implementation plan, the
budget, and a plan for evaluating success.
Step 1 – Situation Analysis
The situation analysis is also known as the SWOT (strengths, weaknesses,
opportunities, and threats) analysis, which examines the internal strengths and
weaknesses and the external opportunities and threats. Three key environmental
factors that affect e-marketing include legal, technological, and market-related
factors.
Step 2 – E-Marketing Strategic Planning
Strategic planning involves determining the fit between the organization’s
Step 3 – Objectives
Objectives are to be task-specific (what is to be accomplished), measurable (how
much), time-specific (by when) and realistically attainable.
Step 4 – E-Marketing Strategies
E-marketing strategies involve the 4 P’s and relationship management to achieve
plan objectives regarding the offer (product), value (pricing), distribution/supply
chain (place), and communication (promotion). These are called tier 2 strategies.
The Offer: Product Strategies
A firm can sell merchandise, services, or advertising on its Web site.
Step 5 – Implementation Plan
This is the step in which the marketer selects the marketing mix – the 4 P’s,
relationship management tactics, and other tactics to achieve the plan objectives
and then devises detailed plans for implementation. Importance is placed on
information gathering tactics, Web site log analysis, and business intelligence.
Step 6 – Budget
Marketers need to determine the returns from an investment: cost/benefit analysis,
return on investment (ROI), internal rate of return (IRR), and return on marketing
investment (ROMI).
Revenue Forecast
The firm uses an established sales forecasting method for estimating the
site revenues in the short, intermediate, and long term.
Intangible Benefits – intangible benefits include brand equity,
Step 7 – Evaluation Plan
Chapter Summary
The e-marketing plan is a guiding, dynamic document for e-marketing
strategy formulation and implementation. The purpose is to help the firm achieve
its desired results as measured by performance metrics according to the
specifications of the e-business model and e-business strategy. Although some
entrepreneurs use a napkin plan to informally sketch out their ideas, a venture
capital e-marketing plan will help show that the e-business idea is solid and the
entrepreneur has an idea of how to run it.
Creating an e-marketing plan requires seven steps. The first is to conduct
a situation analysis by reviewing environmental and SWOT analyses, existing
marketing plans and company/brand information, and e-business objectives,
Chapter Outline
Opening Vignette: The Twitter Story
Have the class read the opening vignette on the Twitter phenomenon. If you have
Internet access in your classroom, go on Twitter and access your own or your
student’s account. Discuss how Twitter and its academic and commerce
capabilities are shaping, and will continue to shape, the future of how social
interaction reflects upon purchasing habits.
By May 2013……
I. Overview of the E-Marketing Planning Process
A. Questions to be asked:
1. How can information technologies assist marketers in building
revenues and market share?
2. How can information technologies assist in lowering costs?
3. How can firms identify a sustainable competitive advantage
with the Internet with constant change and international
competitors?
B. This marketing process entails three steps:
2. Plan implementation
Chapter 3 will examine the first of these steps: the e-marketing plan.
II. Creating an E-Marketing plan
The e-marketing plan is a blueprint for e-marketing strategy formulation and
implementation. The Gartner Group correctly predicted that up to 75% of all e–
business projects before 2002 would fail due to fundamental flaws in planning. If
brick-and-mortar companies realize the importance that planning play in the
success of their business, why would so many dot.com companies overlook this?
A. The Napkin Plan
2. Larger corporations have versions of this called just-do-it,
activity-based, bottom-up plans.
B. The Venture Capital E-Marketing Plan – small to mid-sized firms may
be able to start with the napkin plan, but as a firm grows it will require
capital, and financiers or investors will require a comprehensive e–
marketing plan.
1. Types of investors
a. Private funds (usually the smallest amount of
2. Questions that business plans should cover:
a. Who are the new venture’s customers?
b. How does the customer make decisions about buying
this product or service?
c. To what degree is the product or service a compelling
3. Exit plan
a. Investors look for a way to get their money and
profits out of the venture
III. A Seven-Step E-Marketing Plan
Seven key planning elements are included in the seven-step e-marketing plan.
One commonly overlooked element crucial to the success of an e-business is
feedback. Many experts recommend a contingency plan and trigger points that if
reached will invoke strategy refinement. The steps of the e-marketing plans are
detailed below.
A. Step 1 – Situation Analysis
1. Also known as a SWOT analysis, which measures:
a. Strengths (internal)
2. Environmental factors
3. A firm’s strengths and weaknesses for the online world may be
different than for its brick-and-mortar business.
B. Step 2 – E-Marketing Strategic Planning – determining a fit between
the organization’s objectives, skills, and resources and its changing
market opportunities. These tier 1 strategies may include:
1. Market opportunity analysis
3. Identifying brand differentiation variables
4. Positioning strategies
C. Step 3 – Objectives – in general, an objective in an e-marketing plan
takes includes:
2. Measurable quantity (how much)
4. Sample objectives may be:
a. Increase market share
b. Increase the number of comments left on a blog
c. Increase the sentiment of comments to 5:1 (positive:
negative)
d. Increase sales revenue
e. Reduce costs
D. Step 4 – E-Marketing Strategies – Marketers create strategies
regarding the four P’s and for customer and relationship strategies,
called tier 2 strategies. Tier 1 and tier 2 strategies are interrelated.
Tier 2 strategies may include:
1. The Offer: Product Strategies
a. Sell merchandise, services or advertising on the
2. The Value: Pricing Strategies – how online product prices will
compare with offline equivalents. Two pricing trends are:
a. Dynamic pricing – different price levels for different
3. Distribution Strategies – firms use the Internet to distribute
products or create efficiencies among supply chain members.
b. Agent e-business models
4. Marketing Communication Strategies – used both to draw
5. Relationship Management Strategies
E. Step 5 – Implementation Plan – marketers decide on the marketing
mix, relationship management tactics, and other tactics to achieve the
plan objectives. Tactics include:
1. Information-gathering tactics
F. Step 6 – Budget – identifying the expected returns from the investment
1. Revenue Forecast (short term, intermediate, and long term)
2. Intangible Benefits
3. Cost Savings
4. E-Marketing costs
a. Technology costs
b. Site design
G. Step 7 – Evaluation Plan – the success of the e-marketing plan relies
on continuous evaluation.
2. Balanced Scorecard
