Download Chapter 4

Electronic Marketing
Chapter 4
The Actions of Marketing
Implementation
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Minding the Details
• Customer tracking system
– Record individual purchasing habits or special interests
– Inventory tracking devices in medium to large companies
– Purchase dates
– Length of warranty
– Categories of merchandise
– Gift or personal use
– Payment preference
– Different characteristics are important to different industries
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Minding the Details
• Reporting formats
– Mailing lists of customers, dealers, wholesalers, or prospects
– Customer service or maintenance records
– Sales movements in planning future advertising expenditures
– “Coupon keys” identify sources
• Tracking software also will organize the information into
easy-to-read and understand reports with color graphs or
charts
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Keeping in Touch with the Customer
• E-mail notices
• Global positioning satellite system (GPS) is a valuable
differentiation factor in transportation
• Sample of customer inquires is electronically forwarded to
the marketing department every day; follow-up questions or
replies can be issued within a time standard, such as
twenty-four hour promise of response
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Setting Priorities for Action
• Marketing implementation can be simple or complex
• Can require international, national, regional, or local efforts
• It may bring together manufacturers, wholesalers, and
retailers
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Setting Priorities for Action
• Importance of organization and delegation
– Outlining the tasks
– Determining who will implement these tasks
– Breaking down the big program into bite-size portions
– Coordinate internal personnel and tasks as well as external
resources for e-commerce
• Online implementation can be complex since longer lead
times are required by telecommunications or hardware
suppliers
• Suppliers can be of great help, many marketers will
outsource some crucial activities
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Setting Priorities for Action
• Suppliers, key people or organizations working outside the
company must understand
– What final outcomes are expected
– How the work or systems are to be designed
– How progress is to be measured
– Who the people that comprise the supplier’s staff are and what
qualifications the staff has
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Setting Priorities for Action
• Understanding continued…
– What the length of the engagement is expected to be
– How ongoing maintenance of the Web site is to be performed
– How or when the supplier is to be paid
• Prepayments
• Installment payments
• Milestone payments
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Setting Priorities for Action
• There are mixed opinions on the value or flexibility in using
outside suppliers
– Supporters’ position on hiring an outside firm
• Supporters pose that engaging outside software developers adds
fresh thinking and objectivity
• Introduces experience gained from other assignments
• Pushes overhead costs to the consulting firm
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Setting Priorities for Action
• Opinions continued…
– Opponents’ position on hiring outside the firm
• Consultants charge up-front retainers
• Lack necessary proof or promise of successful completion
• Many people have trouble visualizing the end product or service
• Worry that outside suppliers’ staffs are incompetent
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Setting Priorities for Action
• Checking Suppliers
– The supplier firm’s credentials are easily checked by calling
current and past clients
– Speaking with suppliers that have done business with the
company
– Financial inquiry report such as Dunn and Bradstreet financial
profiles
– Marketer asks about the supplier’s business practices
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Setting Priorities for Action
• To assure that equal attention is paid to the client
– Write into the business contract who will be the company
contact
– Identify the software design team
– Identify who in each firm will be the arbitrators should
problems or misunderstandings arise
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Setting Priorities for Action
• Concern with confidentiality and security issues
– Careful screening of the software firm and its associates
– Nondisclosure agreements should be signed by all parties,
including supplier and client interests
– Fortifying buildings
– Security personnel to accompany building visitors from checkin to checkout
– Verification of authenticity with credible companies that supply
services to the building
– Should be suspicious of liaisons such as hiring the brother-inlaw’s software company or employing an old college chum of
the CEO
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Assigning Program Responsibilities
• Efficiency
– CPM (cost per thousand)
– GRP (gross rating points)
– TRP (target rating points)
– Page hits
– Clickthroughs
– “Unique visitors”
• Effectiveness
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
The Disadvantages of
Implementation
• Companies that fail do not have a thorough understanding
of
– What they have created
– How to maintain
– How to evolve
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Planning for the Entire Year
• Bring the marketing process to life through Object & Task
method using concurrent and linear activities
– Begin by setting out specific tasks
– Setting objectives for various exposure vehicles such as Web
design or newspaper or allied traditional media
– Developing the copy and graphic approach for the media
– Selecting and budgeting for media support
– Planning the distribution
– Training the retailer and salespeople
– Identifying any other potential objective
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Measuring Performance
• Any marketing plan that does not estimate acceptable goals
and the time and budget allocated to reach the goals is an
incomplete marketing plan
– Do not forget the P of Performance
• Set performance measurement at the beginning
• Monitor it along the way
• Compare at the end
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo