Steps of the Internet Marketing
Plan
Identify your target audience
Set the objectives
Design the marketing mix strategies to meet the
objectives
Management and organizational issues
Budgeting
Action Plan
Evaluation
Identify the target audience
New or existing customers / prospects
Characteristics of the customers / prospects
Location - specific content for specific countries
Target those customers with the greatest impact on
profitability:
20/80 rule
largest customers: extranet
customers difficult to target using other media
customers who are not brand loyal: promotions,
incentives
decision makers
Set objectives
Cognitive and attitude goals
Increase brand awareness
Position a brand as high tech
Increase knowledge of the company
Disseminate information about a particular topic
Build relationships with customers
Build positive attitudes through more effective customer
service
Set objectives (cont.)
Transaction behavior goals
Build up sales of a product / service
Increase advertising sales on the web site
Sell content to regular subscribers
Increasing the number of points of sales for a product
by building associate programs
Set objectives (cont.)
Internal efficiencies
Decrease promotion costs
Decrease staff travel cost through online collaboration
Increase supply chain coordination
Decrease distribution costs
Decrease order-taking, fulfillment and billing costs
Design Marketing Mix Strategies
Product
product
Digital
Customization
New products
Price
What revenue model?
Negotiation. Ex: Ebay
Segmented pricing. Ex: Federal Express
Cost reduction using the Internet
Design Marketing Mix Strategies
(cont.)
Distribution
Direct selling
Intermediary: affiliate program, online auctions, virtual
mall, reverse auction, etc.
Tangible versus digital products
Marketing communications
Search marketing
Content publishing
E-mail and viral marketing
Community building and social media
Online sales promotion
Design Marketing Mix Strategies
(cont.)
Other issues
domain name
how to migrate a brand to the Internet
strategic partnerships: for promotion, distribution, etc.
Management and organizational
issues
Integration between online and offline activities
Manage possible channel conflicts – Channel
cooperation
Staffing
Organizational structure
Budgeting
Cost elements
Initial creation of the site
Initial promotion of the site
Ongoing maintenance of the site
Ongoing promotion of the site
Relaunch, creation and promotion
Budgeting (cont.)
Cost estimates - related to different stages of
building the site
Domain name registration
Hosting the web site
Creation of the web site
analysis and design of content
creation of content
publishing content on test and live environments
Promoting the web site
Banner advertising and keyword advertising
Registration to search engines
Offline methods to promote URL
Budgeting (cont.)
Cost estimates (cont.)
Maintaining the web site
Measuring effectiveness
Correcting errors
Updating the information
Other cost
Major revisions or relaunches of site usually occur every
2 years
Staff, hardware, software, outside consultants, etc.
Budgeting (cont.)
Revenues
e-commerce
content sponsorship
intermediary fees
membership fees
advertising
target marketing
cost savings
intangible benefits
Cost-benefit analysis is necessary
Action Plan
Action planning including the timing for the different
actions and steps is needed
Example: six steps for action
Pre-development
Content planning
Content development
Publish the site
Pre-launch promotion
Ongoing promotion
Which measures to use to measure
the effectiveness of the Internet
Does the site help achieve the strategic objectives
and goals of the organization
Business effectiveness measures – effect of the
site on the whole business
Marketing effectiveness measures – how is the
site affecting the company’s success in acquiring
and retaining customers
Internet marketing effectiveness – how effective
are the particular marketing techniques used
Business effectiveness measures
Online contribution to revenue
Profitability of the web site (direct revenues minus
operational costs)
Return on Investment – how long does it take to
recover the initial investment
Operational cost reductions – need for fewer staff,
lower material costs, etc.
Marketing effectiveness measures
Customer acquisition and new leads generated
Sales generated by the site
Customer satisfaction and retention rate of customers
who use the site versus those who do not use it
Incremental or cross-sales generated through the web
Impact on customer satisfaction, loyalty and brand
Reduction of costs.
Cost of promotional material (lower printing costs)
Cost of acquiring new customers
Cost of developing/supporting an existing customer
Internet marketing effectiveness
How effective are we in attracting customers to a
site
Content – how well are customers supported with
information and ease of use through the content and
design of the site
Customer orientation – does the site suit to its target
audience
Community and interactivity –
Internet marketing effectiveness
(cont.)
Effectiveness in moving the customers across the
decision process
Awareness efficiency
Attractibility efficiency – number of individual visits
Contact efficiency – number of active visitors
Conversiton efficiency – number of purchases/number
of active visits
Retention efficiency – number of repurchases