Lecture by Dr. Marwan Khammash at Summer School on "Corporate Communications", TU Braunschweig, Institut für Wirtschaftsinformatik (wi2).

1. 1-1
Welcome to E-MARKETING 2009
Lecture 1
E-MARKETING 5/E (JUDY STRAUSS AND RAYMOND
FROST)
Part I: E-Marketing in Context
Chapter 1: Past, Present, and Future
Bangor Business Dr. Marwan Khammash
School/Wi2

2. Lecture1 Objectives
1-2
 After Lecture1, you will be able to:
 Explain how the internet and information technology
advances offer benefits and challenges to consumers,
businesses, marketers, and society.
 Distinguish between e-business and e-marketing.
 Explain how increasing buyer control is changing the
marketing landscape.
 Understand the distinction between information or
entertainment as data.
 Identify several trends that may shape the future of e-
marketing.

3. Dell Starts Listening
1-3
 In 2004, Dell held 28.2% of U.S. computer market
share.
 To reduce costs, Dell Computer began outsourcing
customer service to a firm in India.
 Market share increased to 28.8% but complaints
and consumer dissatisfaction rose.
 Dell digital media manager initiated blogs in
several languages to improve communication.

4. Dell Starts Listening, cont.
1-4
 Dell’s blogs became mechanisms for handling
consumer complaints and ideas.
 Blog usage resulted in over 20 changes to the
company.
 What are the opportunities and risks in utilizing
blogs for improving customer service?

5. Internet 101
1-5
 The internet is a global network of interconnected
networks.
 E-mail and data files move over phone lines, cables,
and satellites from sender to receiver.
 There are two special uses of the internet:
 Intranet:network that runs internally in an organization.
 Extranet: two joined networks that share information.

6. Internet 101, cont.
1-6
 E-business is the continuous optimization of a firm’s
business activities through digital technology.
 E-commerce is the subset of e-business focused on
transactions.
 E-marketing is one part of an organization’s e-
business activities.

7. E-Marketing is Bigger than the Web
1-7
 The Web is the portion of the internet that supports
a graphical user interface for hypertext navigation
with a browser.
 The Web is what most people think about when they
think of the Internet.

8. The Web Is One Aspect of E-Marketing
1-8
 Exhibit 1.1

9. E-Marketing is Bigger than Technology
1-9
 The internet provides individual users with
convenient and continuous access to information,
entertainment, and communication.
 Communities form around shared photos, videos,
and online profiles.
 The digital environment enhances processes and
activities for businesses.
 Societies are enhanced through more efficient
markets, more jobs, and information access.

10. Global Internet Users
1-10
 Exhibit 1.3

11. E-Marketing’s Past: Web 1.0
1-11
 The Internet started in 1969 as the ARPANET, a
network for academic and military use.
 Web pages and browsers appeared in 1993.
 The first generation of e-business was like a gold
rush.
 Between 2000 and 2002, more than 500 internet firms
shut down in the U.S.
 By Q4 2003, almost 60% of public dot-coms were
profitable.

12. E-Business to Just Business
1-12
 Exhibit 1.5

13. E-Marketing Today: Web 2.0
1-13
 Web 1.0 connected people to networks.
 Web 2.0 connected people with machines and each
other.
 Web 2.0 is the second generation of internet
technology and includes:
 Blogs
 Social networking
 Photo, video, and bookmark sharing

14. The Future: Web 3.0
1-14
 The newest technologies allow marketers to focus on
user:
 Engagement
 Participation
 Co-creation
 Online gaming represented over $1 billion in
revenue and 15 million players in 2006.

15. Consumers Have More Control
1-15
 The internet provides a communication platform for
individual comments, both positive and negative.
 Comments can spread quickly and rapidly.
 New technologies such as digital video recorders
(DVRs) will increase consumer control.
 You tube?

16. Power Shift from Companies to Individuals
1-16
 Exhibit 1.7

17. Wireless Networking Increases
1-17
 Cell phones, PDAs, and laptops connect to the
internet via wireless modem worldwide.
 Starbucks
 Hotels and airports
 Queen Mary II luxury liner
 train stations
 Customers will have information, entertainment, and
communication when, where, and how they want it.

18. WiFi at Train Station in France
1-18

19. Appliance Convergence
1-19
 The receiving appliance is separate from the media
type.
 Computers can receive digital radio and TV.
 TV sets can receive the Web.
 New types of “smart” receiving appliances will
emerge.
 Internet
refrigerator is many digital appliances in one.
 Global positioning systems (GPS) allow in-car
communication and entertainment.

20. Semantic Web
1-20
The Semantic Web will utilize a standard definition
protocol that will allow users to find information
based on its type, such as:
 The next available appointment for a doctor.
 Details about an upcoming concert.
 Menu at the local restaurant.
 Represents the next huge advance: providing
worldwide access to data on demand without
effort.

21. Semantic Web
1-21
♦ Marketers want to give customers information when and
where they want it.
♦ They use several different receiving appliances to convey
their messages.
♦ The Semantic Web is an extension of the current Web
making it easer to obtain information by:
a. Providing information based on type
b. Person, contact information, next available
appointment, restaurant menu’s.
♦ The Semantic Web was invented by Sir Tim Berners-Lee.

22. Internet-Time Analogy Ex.1.9
1-22

23. Group Presentations
 Case Study Analysis
 In a group of 5 members, you have to analyze a company’s online
strategies using the book concepts and terminology. Each lecture, I will
select a company with a large online presence. It will be a well known
company so that you can find articles written about its internet
strategies and not have to rely solely on its Website. Be sure to read
the press releases at the site for more insight. Please note that groups
will be formed alphabetically.
 Each group will present their findings in a 20 minute power point
presentation. In a group of 5, each member has to present for 5
minutes. There will be 5 minutes for Q&A afterwards. Please include the
following in your presentation:

24. Group Presentations
Part 1 Overview: Internet Properties & Marketing Implications
• Website analysis
• Web and other online content (such as mobile content)
• Website properties (table 1.6 in the core textbook)
• Website design and usability features
• Multimedia and interactive features
Part 2 Benefit, Cost & Value Creation – The Marketing Mix
• Creating a positive customer experience
• Benefit, cost & value creation
• Internet marketing mix
• Customer relationship management features

25. Group Presentations
Part 3 Consumer Characteristics & Branding Strategy
• Branding and consistency online/offline branding
• Environmental, situational, and personal factors affecting users
• Market segments served
• Brand position
• Offline versus online customers
Part 4 Website Analysis
• Currency
• Content, including multimedia and user engagement opportunities
• Usability: navigation, access
• Other company owned sites (e.g., microsites or support.dell.com)

26. Group Presentations
Part 5 Business Model
• Business pyramid model
• Specific e-business models used (chapter 2 in the core textbook)
• Customer value (products, price)
• Revenue stream sources
Part 6 E-Marketing Metrics
• Site objectives
• Metrics likely used at this site (using balanced scorecard and other
approaches in chapter 3 of the core textbook)
Part 7 Conclusion and Outlook
• Evaluation of the company’s online properties
• Recommendations for improving the business model or opportunities.

27. Good Luck
See you in the afternoon!

28. 1-28
Welcome to E-MARKETING 2009
Lecture 2
E-MARKETING 5/E (JUDY STRAUSS AND RAYMOND
FROST)
Part I: E-Marketing in Context
Chapter 2: Strategic E-Marketing and Performance Metrics
Bangor Business Dr. Marwan Khammash
School/Wi2

29. Lecture 2 Objectives
29-2
 After Lecture 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 performance metrics and the
Balanced Scorecard to measure e-business and e-
marketing performance.

30. Amazon.com
2-30
 Founded in 1995 as an online retailer.
 Did not become profitable until Q4 2001.
 In 2007, generated $14.8 billion in net sales, $476
million in net income.
 Leveraged its competencies into different e-business
models.
 Establishede-commerce partnerships with Target,
Macy’s, and others.
 Provided developer services.
 Created the first affiliate program.

31. Amazon.com, cont.
2-31
 Amazon’s success is based on selection, lower prices,
product availability, innovative technology, and
better product information.
 CEO Jeff Bezos is not interested in expanding to the
physical world.
 Which of Amazon’s core competencies do you think
will drive its strategy in the future?
 www.amazon.co.uk

32. Strategic Planning
2-32
 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.

33. ESP: Environment, Strategy, and Performance
2-33
 The e-marketing plan flows from the organization’s
overall goals and strategies.
 The ESP framework illustrates the relationships
among environment, strategy, and performance.
 A SWOT analysis of the business environment (E)
leads to the development of strategy (S) and the
measurement of performance (P).

34. Strategy
2-34
 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 marketing objectives.

35. Business Models
2-35
 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.

36. Selecting a Business Model
2-36
 A firm will select one or more business models as
strategies to accomplish enterprise goals.
 Components of business model selections:
Customer value Scope
Price Revenue sources
Connected activities Implementation
Capabilities Sustainability

37. Level of Commitment to E-Business
2-37
Pure dot-com
(Amazon, MySpace)
Both online and offline
(Dell and most retailers)
e-mail, blog

38. Activity-Level Models
2-38
1. Order processing
2. Online purchasing
3. E-mail
4. Content publisher
5. Business intelligence (BI)
6. Online advertising and public relations (PR)
7. Online sales promotions
8. Dynamic pricing strategies online

39. Business Process-Level Models
2-39
1. Customer relationship management (CRM)
2. Knowledge management (KM)
3. Supply chain management (SCM)
4. Community building online
5. Database marketing
6. Enterprise resource planning (ERP)
7. Mass customization

40. Enterprise-Level Models
2-40
1. E-commerce, direct selling, content sponsorship
2. Portal
3. Social networking
4. Broker models
 Online exchange, hub
 Online auction
5. Agent models
 Manufacturer’s/selling agents
 Shopping agent
 Reverse auction

41. Pure Play Models
2-41
 Pure plays are businesses that began on the internet.
 They represent the top level of the E-Business pyramid.
 Pure plays face significant challenges.
 They must compete as new brands.
 They may need to take customers away from established
businesses.
 Some pure plays have redefined industries:
www.eTrade.com
www.eBay.com
www.Yahoo.com
www.MySpace.com

42. Performance Metrics
2-42
 Performance metrics are specific measures designed
to evaluate the effectiveness and efficiency of
operations.
 Performance metrics:
 Provide measurable outcomes.
 Must be easy to understand and use.
 Must be actionable.
 Can be utilized for employee evaluations.

43. Web Analytics
2-43
 Web analytics, commonly called metrics, is the study
of user behavior on Web pages.
 Metrics measure activities such as:
 Click throughs
 Visitor patterns
 Length of time spent on a page or site
 Conversions to sales
 Web analytics software helps companies analyze
data on server logs for marketing purposes.

44. Social Engagement Metrics
2-44
 Online measurement also includes metrics for
evaluating Web 2.0 technologies.
 Social engagement metrics allow marketers to know
how visitors participate, not just whether they landed
on a page.
 Time spent viewing a video, playing a game, or
listening to music.
 Writing a comment on a blog.
 Downloading a MP3 file, ring tone, or other content.

45. The Balanced Scorecard
2-45
 The Balanced Scorecard provides a framework for
understanding e-marketing metrics.
 The Balanced Scorecard provides 4 perspectives.
 Customer perspective
 Internal perspective
 Learning and growth perspective
 Financial perspective

46. The Balanced Scorecard:
Customer Perspective
2-46
 The customer perspective scorecard includes ways to
measure goals such as customer loyalty, satisfaction,
appropriateness of target markets, etc.
 Loyalty and satisfaction measures may include
percentage of visitors who return to site and time
between visits.
 Transaction measures may include measurement of
unique visitors, online sales abandoned, etc.

47. The Balanced Scorecard:
Internal Perspectives
2-47
 The Internal perspective scorecard includes ways to
measure goals related to the quality of online
services.
 Quality of online technical help such as amount of
time to answer e-mail
 Web page loading time
 Inventory levels, inventory turns

48. The Balanced Scorecard:
Learning and Growth Perspectives
2-48
 The learning and growth perspective scorecard
includes ways to measure goals related to online
service innovation and continuous improvement.
 Average time from concept to start
 Speed to match a rival’s site
 Time between site relaunches

49. The Balanced Scorecard:
Financial Perspectives
2-23
 The financial perspective scorecard includes ways to
measure financial goals.
 Sales growth and market share
 Return on invested capital
 Average order value
 Individual customer profit

50. 1-50
Welcome to E-MARKETING 2009
Lecture 3: The E-Marketing Plan
E-MARKETING 5/E (JUDY STRAUSS AND RAYMOND
FROST)
Chapter 3: The E-Marketing Plan
Bangor Business Dr. Marwan Khammash
School/Wi2

51. Lecture 3 Objectives
3-2
 After reading Lecture 3, you will be able to:
 Discuss the nature and importance of an e-marketing plan
and outline its 7 steps.
 Show the form of an e-marketing objective and highlight
the use of an objective-strategy matrix.
 Describe the tasks that marketers complete as they create
e-marketing strategies.
 List some key revenues and costs identified during the
budgeting step of the planning process.

52. The Second Life Story
3-52
 Second Life (SL) is a multiplayer online role-playing
game launched in 1999.
 SL had 2.3 million residents in 2008 who created SL’s 3-
D virtual world.
 Over 50,000 businesses, including Adidas, Pontiac, IBM,
and Toyota, have a presence in SL.
 Companies are using SL to build product buzz and connect
with SL’s residents.
 In-world advertising revenue in the U.S. was $186 million in
2005.

53. The Second Life Story, cont.
3-53
 Research firm Gartner Group believes that 80
percent of active online users will join a virtual
world by 2010.
 Are you or your friends a member of a virtual world
today?
 Do you think you might join one in the future?
 Do you think SL represents a good business
opportunity?

54. Overview of the E-Marketing
3-54
Planning Process
 The e-marketing plan is a blueprint for e-marketing
strategy formulation and implementation.
 The plan serves as a road map to guide the firm,
allocate resources, and make decisions.

55. Ex 3.1
3-55

56. Two Common Types of Plans
3-56
 Napkin plan
 Entrepreneursmay jot down ideas on a napkin.
 Large companies might create a just-do-it, activity-
based, bottom-up plan.
 The Venture Capital E-Marketing Plan is a more
comprehensive plan for entrepreneurs seeking start-
up capital.

57. Sources of Funding
3-57
 Bank loans
 Private funds
 Angel investors
 Venture capitalists (VCs)

58. Seven-Step E-Marketing Plan
3-58
1. Situation analysis
2. E-Marketing strategic planning
3. Objectives
4. E-Marketing strategy
5. Implementation plan
6. Budget
7. Evaluation plan

59. Step 1: Situation Analysis
3-59
 Review the firm’s environmental and SWOT
analyses.
 Review the existing marketing plan and any other
information that can be obtained about the
company and its brands.
 Review the firm’s e-business objectives, strategies,
and performance metrics.

60. SWOT Analysis Leading to
E-Marketing Objective
3-11
Opportunities Threats
1. Hispanic markets growing and 1. Pending security law means costly
untapped in our industry. software upgrades.
2. Save postage costs through e-mail 2. Competitor X is aggressively using
marketing. e-commerce.
Strengths Weaknesses
1. Strong customer service 1. Low-tech corporate culture.
department. 2. Seasonal business: Peak is summer
2. Excellent Web site and database months.
system.
E-Marketing Objective: $500,000 in revenues from e-commerce in one year.

61. Step 2: E-Marketing Strategic Planning
3-61
 Market and product strategies, called Tier 1 tasks or
strategies, are outcomes of strategic planning.
 Segmentation
 Targeting
 Differentiation
 Positioning
 Marketers conduct analysis to determine strategies.
 Market opportunity analysis
 Demand analysis
 Segment analysis
 Supply analysis

62. Step 3: Objectives
3-62
 An objective in an e-marketing plan may
include the following aspects:
 Task(what is to be accomplished)
 Measurable quantity (how much)
 Time frame (by when)

63. Step 3: Objectives, cont.
3-63
 Most e-marketing plans aim to accomplish objectives
such as the following:
 Increase market share
 Increase the number of comments on a blog
 Increase sales revenue
 Reduce costs
 Achieve branding goals
 Increase database size
 Achieve customer relationship management goals
 Improve supply chain management

64. Step 4: E-Marketing Strategies
3-64
 Tier 2 strategies include strategies related to the 4
P’s and relationship management to achieve plan
objectives.
 Product strategies
 Pricing strategies
 Dynamic pricing
 Online bidding

65. Step 4: E-Marketing Strategies, cont.
3-65
 Distribution strategies
 Directmarketing
 Agent e-business models
 Marketing communication strategies
 Relationship management strategies
 Some firms use CRM (customer relationship management) or
PRM (partner relationship management) software to
integrate customer communication and purchase behavior
into a database.

66. Steps 2, 3, and 4 of the
3-17
E-Marketing Plan

67. Step 5: Implementation Plan
3-67
 Tactics are used to achieve plan objectives
 Marketing mix (4 Ps) tactics
 Relationship management tactics
 Marketing organization tactics
 Staff
 Department structure
 Information-gathering tactics
 Web site log analysis
 Business intelligence and secondary research

68. Step 6: Budget
3-68
 The plan must identify the expected returns from
marketing investments, including:
 Cost/benefit analysis
 ROI calculation
 Internal rate of return (IRR) calculation
 Return on marketing investment (ROMI)

69. Revenues and Costs
3-69
 Revenue forecast
 Intangible benefits, such as brand equity
 Cost savings
 E-Marketing costs
 Technology
 Sitedesign
 Salaries
 Other site development expenses
 Marketing communication
 Miscellaneous

70. Step 7: Evaluation Plan
3-70
 Marketing plan success depends on continuous
evaluation.
 E-marketers must have tracking systems in place to
measure results.
 Various metrics relate to specific plan goals.
 Today’s firms are ROI driven.
 E-marketers must show how intangible goals will lead to
higher revenue.
 Accurate and timely metrics can help justify
expenditures.