E-Marketing
Chapter 2: Strategic E-Marketing
Chapter 2 Objectives
• After reading Chapter 2 you will be able to:
• Explain the importance of strategic planning,
strategy, e-business strategy, and e-marketing
strategy.
• Identify the main e-business models at the activity,
business process, and enterprise levels.
• Discuss the use of metrics and the Balanced
Scorecard to measure e-business and e-marketing
performance.
Strategic Planning
• A managerial process to develop and maintain
a viable fit between the organization and its
changing market opportunities
• Process identifies firm’s goals for
•
•
•
•
Growth
Competitive position
Geographic scope
Other objectives, such as industry, products, etc.
Strategy
• Strategy is the means to achieve a goal.
• E-business strategy
• Strategy that deploys enterprise resources to reach
performance objectives, competitive advantages.
• E-marketing strategy
• Strategy that capitalizes on information technology
to reach objectives.
Business Models
• A business model is a method for long term
survival and a value proposition for partners,
customers and revenue
• E-business models include the use of
information technology to achieve long term
goals.
• Firm selects one or more models as strategies
to accomplish enterprise goals.
Level of business Impact
Level of Commitment to E-Business
Business Transformation
(competitive advantage,
industry redefinition)
Pure
Play
Pure Dot-Com
(Amazon)
Enterprise
Effectiveness
(customer
retention)
Efficiency
(cost
reduction)
Business Process
Activity
Click and Mortar
(eSchwab, most retailers)
Customer
Relationship
Management
Brochureware
E-Mail
Activity-level models
•
•
•
•
•
•
•
•
Online purchasing
Order processing
E-mail
Content publisher (brochureware)
Business intelligence
Online advertising
Online sales promotion
Pricing strategies
Business Process-Level Models
•
•
•
•
•
•
•
•
Customer relationship management (CRM)
Knowledge management
Supply chain management
Community building
Affiliate programs
Database marketing
Enterprise resource planning (ERP)
Mass customization
Enterprise-Level Models
• E-commerce
• Direct selling
• Content sponsorship
• Portal
• Online broker
• Exchange
• Auction
• Metamediary
• Purchasing agent
• Virtual mall
Pure Play Model
• A Pure Play is a business that began on the
Internet.
• Top level of the E-Business pyramid.
• Examples: E*Trade, eBay, Yahoo!
• Most dot-com crash failures were pure plays.
Performance Metrics
• Performance metrics are specific measures
designed to evaluate the effectiveness and
efficiency of operations.
• The Balanced Scorecard provides a framework
for understanding e-marketing metrics.
• Four perspectives: customer, internal, innovation
and learning (growth), and financial
The Balanced Scorecard
• Customer perspective
•
•
•
•
Time
Quality
Performance and service
Cost
• Internal perspective
• Cycle time
• Manufacturing quality
• Employee skills and productivity
The Balanced Scorecard
• Innovation and learning (growth) perspective
• Number of new products
• Penetration of new markets
• Improvement of processes such as CRM
• Financial perspective
•
•
•
•
Income and expense metrics
ROI
Sales
Market share growth
Applying the Balanced Scorecard to EBusiness and E-Marketing
• Metrics for the Customer Perspective (Exhibit
2.6)
• Customer perceptions of product value
• Customer buying patterns
• Metrics for the Internal Perspective (Exhibit 2.7)
• Customer service
• Information technology
• Supply chain
Applying the Balanced Scorecard to EBusiness and E-Marketing
• Metrics for the Innovation and Learning
Perspective (Exhibit 2.8)
• CRM
• Sales conversions
• Metrics for the Financial Perspective (Exhibit
2.10)
• Profits
• ROI
E-Marketing
Chapter 2: Strategic E-Marketing
Chapter 2 Objectives
• After reading Chapter 2 you will be able to:
• Explain the importance of strategic planning,
strategy, e-business strategy, and e-marketing
strategy.
• Identify the main e-business models at the activity,
business process, and enterprise levels.
• Discuss the use of metrics and the Balanced
Scorecard to measure e-business and e-marketing
performance.
Strategic Planning
• A managerial process to develop and maintain
a viable fit between the organization and its
changing market opportunities
• Process identifies firm’s goals for
•
•
•
•
Growth
Competitive position
Geographic scope
Other objectives, such as industry, products, etc.
Strategy
• Strategy is the means to achieve a goal.
• E-business strategy
• Strategy that deploys enterprise resources to reach
performance objectives, competitive advantages.
• E-marketing strategy
• Strategy that capitalizes on information technology
to reach objectives.
Business Models
• A business model is a method for long term
survival and a value proposition for partners,
customers and revenue
• E-business models include the use of
information technology to achieve long term
goals.
• Firm selects one or more models as strategies
to accomplish enterprise goals.
Level of business Impact
Level of Commitment to E-Business
Business Transformation
(competitive advantage,
industry redefinition)
Pure
Play
Pure Dot-Com
(Amazon)
Enterprise
Effectiveness
(customer
retention)
Efficiency
(cost
reduction)
Business Process
Activity
Click and Mortar
(eSchwab, most retailers)
Customer
Relationship
Management
Brochureware
E-Mail
Activity-level models
•
•
•
•
•
•
•
•
Online purchasing
Order processing
E-mail
Content publisher (brochureware)
Business intelligence
Online advertising
Online sales promotion
Pricing strategies
Business Process-Level Models
•
•
•
•
•
•
•
•
Customer relationship management (CRM)
Knowledge management
Supply chain management
Community building
Affiliate programs
Database marketing
Enterprise resource planning (ERP)
Mass customization
Enterprise-Level Models
• E-commerce
• Direct selling
• Content sponsorship
• Portal
• Online broker
• Exchange
• Auction
• Metamediary
• Purchasing agent
• Virtual mall
Pure Play Model
• A Pure Play is a business that began on the
Internet.
• Top level of the E-Business pyramid.
• Examples: E*Trade, eBay, Yahoo!
• Most dot-com crash failures were pure plays.
Performance Metrics
• Performance metrics are specific measures
designed to evaluate the effectiveness and
efficiency of operations.
• The Balanced Scorecard provides a framework
for understanding e-marketing metrics.
• Four perspectives: customer, internal, innovation
and learning (growth), and financial
The Balanced Scorecard
• Customer perspective
•
•
•
•
Time
Quality
Performance and service
Cost
• Internal perspective
• Cycle time
• Manufacturing quality
• Employee skills and productivity
The Balanced Scorecard
• Innovation and learning (growth) perspective
• Number of new products
• Penetration of new markets
• Improvement of processes such as CRM
• Financial perspective
•
•
•
•
Income and expense metrics
ROI
Sales
Market share growth
Applying the Balanced Scorecard to EBusiness and E-Marketing
• Metrics for the Customer Perspective (Exhibit
2.6)
• Customer perceptions of product value
• Customer buying patterns
• Metrics for the Internal Perspective (Exhibit 2.7)
• Customer service
• Information technology
• Supply chain
Applying the Balanced Scorecard to EBusiness and E-Marketing
• Metrics for the Innovation and Learning
Perspective (Exhibit 2.8)
• CRM
• Sales conversions
• Metrics for the Financial Perspective (Exhibit
2.10)
• Profits
• ROI
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