Chapter 2: E-Marketing and Performance Metrics

strategic planning
the “process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing market opportunities”
performance metrics
specific measures designed to evaluate the effectiveness and efficiency of an organization’s operations
strategy
the means to achieve a goal
e-business strategy
the deployment of enterprise resources for capitalizing on technologies to reach specified objectives and ultimately improve performance and create sustainable competitive advantage
e-marketing strategy
a marketing strategy using information technology
e-business model
a method by which the organization sustains itself in the long term using information technology, which includes its value proposition for partners and customers as well as its revenue streams
revenue streams
cash flows that may come from Web site product sales, advertising sales, and agent commissions
marketing concept
the idea that an organization exists to satisfy customer wants and needs while meeting organizational objectives
value
benefits minus costs
competitive intelligence (CI)
the analysis of the industries in which a firm operates as input to the firm’s strategic positioning and to understand competitor vulnerabilities
customer relationship management (CRM)
CRM is the process of targeting, acquiring, transacting, servicing, retaining, and building long-term relationships with customers that add value both to the organization and to the customer
supply chain management (SCM)
the behind-the-scenes coordination of the distribution channel to deliver products effectively and efficiently to customers
community building
firms build Web sites to draw groups of special interest users
blogs
also known as Web logs, Web sites where entries are listed in reverse chronological order and readers can comment on any entry
affiliate programs
a link to an e-tailer’s Web site, put in by firms to make a commission on all purchases by referred customers
database marketing
collecting, analyzing, and disseminating electronic information about customers, prospects, and products in order to increase profits
enterprise resource planning (ERP)
back-office operations such as order entry, purchasing, invoicing, and inventory control that allow organizations to optimize business processes while lowering costs
mass customization
the internet’s unique ability to individualize marketing mixes electronically and automatically to the individual level
crowdsourcing
this is the practice of outsourcing ads, product development, and other tasks to people outside the organization
freemium
this is a combination of “free” and “premium” where companies offer a basic product for free and then provide upgraded versions for a fee. this pricing model is commonly used for technology products, such as mobile apps
location-based marketing
delivers local and relevant content to a user’s mobile device using GPS technology
e-commerce
use of digital technologies such as the internet and bar code scanners to enable the buying and selling process. e-commerce is about transactions through distribution channels and e-tailing
virtual worlds
sites where users can take the form of avatars and socialize in an online space of their own making
social commerce
is a piece of e-commerce that uses social media and consumer interactions to facilitate online sales
direct distribution
refers to a type of e-commerce in which manufacturers sell directly to consumers, eliminating intermediaries such as retailers (the Dell model)
content sponsorship
an e-commerce business model that involves companies selling online Web site space or e-mail space to advertisers
portal
a point of entry to the internet that combines diverse content from many sources
social network
nodes of individuals or organizations that are connected based on common values, ideas, friendships, and so forth
online brokers
intermediaries who assist in purchase negotiations without actually representing either buyers or sellers
online exchange
electronic forum in which buyers and sellers meet to make transactions
online auction
the auction-style sale of merchandise via the internet
online agents
represent either the buyer or the seller and earn a commission for their work
selling agents
an entity that represents a single firm to help it move products and normally works for a commission
manufacturer’s agents
an entity that represents more than one seller, and, in the virtual world, generally creates Web sites to help an entire industry sell products
purchasing agents
represent buyers. in traditional marketing, they often forge long-term relationships with one or more firms; on the internet, however, they represent any number of buyers, often anonymously
shopping agents
programs that allow the consumer to rapidly compare prices and features within product categories. shopping agents implicitly negotiate prices downward on behalf of the consumer by listing companies in order of best price first
reverse auction
an exchange arrangement in which individual buyers enter the price they will pay for particular items at the purchasing agent’s Web site, and sellers can agree to pay that price or not
pure play
a business that began only on the internet, even if it subsequently added a brick-and-mortar presence
performance metrics
specific measures designed to evaluate the effectiveness and efficiency of an organization’s operations
Web analytics
tools that collect and display information about user behavior on a Web site
Cookie files
are small data files written to a user’s hard drive when visiting a site
page tags
one pixel on a page that is invisible to users. (a pixel is one dot of light on a computer screen)
geolocation
this includes many different technologies to locate an internet-enabled device (and its owner) at its physical world address: for example WiFi, GPS (global positioning satellite coordinates), or simply IP addresses (internet protocol)
Balanced Scorecard
an enterprise performance management system that links strategy to measurement by asking firms to set goals and subsequent performance metrics in four areas: customer, internal, innovation and learning, and financial
impressions
the number of times an ad was served to unique site visitors, regardless of whether they looked at it
share of voice (SOV)
the proportion of online conversations about one brand versus its competitors
sentiment
this is the proportion of online conversation about a brand that is positive, negative, or neutral
tagging
involves attaching keywords to video, photos, or text to help users find the desired content
click-through
determined when a Web surfer clicks on a banner or another ad that is hyperlinked to the advertiser’s site
knowledge management (KM)
a combination of a company’s database contents, the technology used to create the system, and the transformation of data into useful information and knowledge
business-to-business (B2B) exchange
a special place because it allows buyers and sellers in a specific industry to quickly get connected
unique visitors
measures the number of visitors – without repetition – who access a site, application, video, or other social media content within a specific period of time
page views
refers to single pages that are viewed on a social media site
number of searches
measures the number of times users search for the brand, company, or associated key words selected by the organization while typing the key words in a search engine
search engine ranking
evaluates where the organization’s social media content appears in the search engine results pages for desired key words
number of followers, registrations, or subscribers
to the blog, social network page, video channel, or other content
brand influence
can include a number of other metrics, including number of inbound links to a social media property, number of Twitter links that are retweeted, number of comments on posts, and number of times content is shared or linked
content viewership
refers to the number of visitors who consumer content, such as by reading a blog (page views), watching videos or listening to podcasts, and downloading white papers
membership/follower metrics
count the number of RSS (Really Simple Syndication) subscribers, members in a community, such as LinkedIn or meetup.com group, or number of followers on Twitter
number of shares
measures how many times viral content is shared with others
content creation
counts the number of visitors who upload ads for a contest, such as the Frito Lay Super Bowl promotion
content form completion or registration
allowing the company to add the person to their database of names, e-mail addresses, and more
event attendance
online or offline, based on a social media promotion for a Webinar or other event
purchase
the ultimate goal for company marketers
number of ideas
shared in a company’s social media site (such as My Starbucks Idea)
trend spotting
helps companies know what is hot in their target markets