Professional Documents
Culture Documents
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Learning objectives
Relate Digital marketing strategy to marketing and business strategy. Identify opportunities and threats arising from the Digital media. Evaluate alternative strategic approaches.
What is strategy?
Strategy is the direction and scope of an organisation over the long-term: which achieves competitive advantage for the organisation through its configuration of resources within a hallenging environment, to meet the needs of markets and to fulfill stakeholder expectations
(Johnson and scholes)
Porter, M. (2001) Strategy and the Internet, Harvard Business Review, March 2001, 6278.
Competitive strategy is about being different to create and enhance value for customers. It means deliberately choosing a different set of activities to deliver a unique mix of value." (porter)
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Business Strategy
Strategy describes how an organisation intends to create value for its shareholders. The overarching strategic objectives is to create sustained growth in shareholder value. Complementary strategic themes: Business development strategy Customer management strategy Service innovation strategy Operational effectiveness strategy
What Strategy does Defines how we will meet our objectives Sets allocation of resources to meet goals Selects preferred strategic options to compete within a market Provides a long-term plan for the development of the organisation
Vision "We will be a globally respected corporation. (Infosys) Goal Practice Mission To achieve our objectives in an environment of fairness, honesty, and courtesy towards our clients, employees, vendors and society at large." Direction Strategy: defined, credible and coherent, reflecting market, positioning, resources and constraints
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Marketing Strategy
Competitive Strategy
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Situation analysis
Assessment of current contribution of digital marketing (if any) Resource analysis-review of technological, financial and human resources. Includes assessment of organization to deliver digital services External audit
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Services available
Buy and sell-side integrated with ERP or legacy systems. Personalisation of services
Full integration between all internal organisational processes and elements of the value network Across the enterprise and beyond (extraprise)
Organisational scope
Cross-organisational
Transformation
Technology and new responsibilities identified for ecommerce Sell-side e-commerce strategy, not well integrated with business strategy
Change to e-business culture, linking of business processes with partners E-business strategy incorporated as part of business strategy
Strategy
Limited
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A generic SWOT analysis showing typical opportunities and threats presented by the Internet
Marketing integration
Stage 1. Unplanned Stage 2. Stage 1. Diffuse Unplanned management Stage 3. Stage 1. Centralised Unplanned management Stage 4. Stage 1. Decentralised Unplanned operations Stage 5. Stage 1. Integrated & Unplanned optimised
Limited
Discrete
Content: Brochureware Traffic: visitor acquisition Conversion & customer experience Retention
Low-level objectives Specific organisational objectives Refined online channel improvement Integrated multi-channel improvement
Diffuse
Aware
Centralised
Involved
Decentralised
Driving performance
Partnership
Integrated
Integral
Complete
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Example objectives
Achieve 10 per cent online revenue contribution within two years; achieve first or second position in category penetration in the countries within which we operate (this is effectively online market share and can be measured through visitor rankings such as Hitwise cost reduction of 10 per cent in marketing communications within two years; increase retention of customers by 10 per cent; increase by 20 per cent within one year the number of sales arising from a certain target market, e.g. 1825-year-olds; create value-added customer services not available currently; improve customer service by providing a response to a query within two hours, 24 hours per day, seven days a week; all other objectives to be achieved profitably giving a return on investment in a three year period.
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Example allocation of Internet marketing objectives within the balanced scorecard framework
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Efficiency Minimising resources or time needed to complete a process. Doing the thing right. Effectiveness Meeting process objectives, delivering the required outputs and outcomes. Doing the right thing.
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It is used extensively in business and industry, government, and nonprofit organizations worldwide to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organization performance against strategic goals. It was originated by Drs. Robert Kaplan (Harvard Business School) and David Norton as a performance measurement framework that added strategic non-financial performance measures to traditional financial metrics to give managers and executives a more 'balanced' view of organizational performance.
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