Chapter 1, 2 with more MCQs By Ihab

Chapter 2 Strategic E-Marketing and
Performance Metrics
Leveraged its competencies into different e-business models.
➢ Core business is online retailing, “everything store.”

➢ Established e-commerce partnerships.
➢ Developer services provider.
➢ Content provider.
➢ Created the first affiliate program.
Amazon’s success is based on selection, lower prices, better availability, innovative technology,
and better product information.
Strategic Planning
Strategic Planning is process of developing and maintaining a strategic fit between the
organization’s goals and capabilities and its changing market opportunities.
• Process identifies firm’s goals for
– Growth
– Competitive position
– Geographic scope
– Other objectives, such as industry, products, channels, etc.
ESP: Environment, Strategy,

and Performance
The ESP model 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).
Performance metrics are designed to evaluate

effectiveness and efficiency of e-business and e-
marketing operations.
Performance Metrics
Strategy is the means to achieve a goal.
• E-business strategy
– Deploys enterprise resources to reach performance objectives and create

competitive advantage.
• E-marketing strategy
– Capitalizes on information technology to reach specified objectives.
Business Models
A company will select one or more business models as strategies to accomplish enterprise goals.
• An e-business model is a method by organization sustains itself in the long term using
information technology,
included its value proposition for partners and customers as well as its revenue streams.
Components of business model selections:
Customer value Scope
Price Revenue sources
Connected activities Implementation
Capabilities Sustainability
Performance Metrics
Level of Commitment to E-Business ‫مهم جدا‬
Activity-Level E-Business Models

1. Online purchasing
2. Order processing
3. E-mail
4. Content publishing
5. Business intelligence (BI)
6. Online advertising and public relations (PR)
7. Online sales promotions
8. Pricing strategies
9. Social media communication
10. Search marketing
Business Process-Level E-Business Models

1. Customer Relationship Management (CRM)
2. Knowledge management
3. Supply chain management
4. Community building
Performance Metrics
5. Affiliate programs
6. Database marketing
7. Enterprise resource planning (ERP)
8. Mass customization
9. Crowdsourcing
10. Freemium
11. Location-based marketing
Enterprise-Level E-Business Models

– E-commerce refers to online transactions: selling goods and services on the internet.
– Social commerce uses social media to facilitate online sales.
– Direct distribution is when manufacturers sell directly to consumers.
– Content sponsorship is a form of e-commerce in which companies sell advertising on
their Web pages, YouTube videos, or other online media.
• A portal is a point of entry to the internet that combines diverse content from many
sources.
– Social network sites: users together to share interests and personal or professional
profiles.
– Online brokers are intermediaries who assist in the purchase negotiations without actually
representing either buyers or sellers.
– Manufacturer’s agents represent more than one seller.
– Purchasing agents represent buyers.
Pure Play
Pure plays are businesses that began on the internet, representing the final level of the 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: Yahoo!, Google, Twitter, Flickr, and eBay.
Performance Metrics
Performance Metrics Inform Strategy

Performance metrics are specific measures designed to evaluate the effectiveness and
efficiency of operations, online and offline.
Performance metrics:
– Provide measurable outcomes.

– Must be easy to understand and use.
– Must be actionable.
It can motivate employees to make decisions that lead to desired outcomes.
Web Analytics is the e-marketing term for the study of user behavior on Web pages.
• Metrics measure activities such as:
– Click throughs from advertising.

– Page views.
– Number of comments posted on a blog.
Performance Metrics
– Number of fans on a company Facebook page.
– Conversions to sales.
Data Collection
Data for Web analytics is collected in several ways:
– Website server logs

– Cookie files
– Page tags
– Geolocation
The Balanced Scorecard (Important) provides a framework for understanding e-marketing
metrics.
The Balanced Scorecard provides 4 perspectives.
o Customer perspective
o Internal perspective
o Learning and growth perspective
o Financial perspective
The Customer Perspective Scorecard

includes ways to measure goals such as customer
satisfaction, engagement and retention.
o Loyalty and satisfaction measures may include the percentage of visitors who return to
site, time between visits, and shopping cart abandonment.
o Customer engagement could include the number of comments, photos or videos posted.
Performance Metrics
The Internal Perspective Scorecard
includes ways to measure goals related to the quality of
online services and measures for the entire supply chain.
– Number of customers who use the service

– Number of complaints in social media
– Amount of time to answer customer e-mail
– Number of updates per day
The Learning & Growth Perspective Scorecard

includes human resources, product innovation and continuous improvement of marketing
processes.
– Number of new service products to

market
– Number of customer complaints and

fixes
– Number of conversions from online leads
The Financial Perspective Scorecard

includes ways to measure financial goals such as sales, profits and return on investment (ROI),
including:
– Sales growth and market share.

– Average order value.
– Individual customer profit.
Performance Metrics
Social Media Performance Metrics
• Unique visitors
• Page views
• Impressions
• Number of searches
• Search engine ranking
• Number of followers, registrations, or
subscribers
Brand Health Metrics

• Share of Voice (SOV)
• Sentiment (Feelings)
• Brand influence
Engagement Metrics
• Content viewership
• Tagging, bookmarking or “likes”
• Membership/Follower
• Number of shares
• Content creation
Action & Innovation Metrics

• Action metrics
– Click-through to an advertiser’s site.

– Contact form completion or registration.
– Event attendance.
– Purchase.
• Innovation metrics
– Number of ideas shared.

– Trend spotting.
Performance Metrics

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Chapter 1, 2 with more MCQs By Ihab

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Chapter 2 Strategic E-Marketing and

➢ Core business is online retailing, “everything store.”

• Process identifies firm’s goals for

ESP: Environment, Strategy,

• A SWOT analysis of the business environment (E) leads to

Performance metrics are designed to evaluate

– Deploys enterprise resources to reach performance objectives and create

– Capitalizes on information technology to reach specified objectives.

Components of business model selections:

Customer value Scope

Price Revenue sources

Connected activities Implementation

Activity-Level E-Business Models

Business Process-Level E-Business Models

Enterprise-Level E-Business Models

• Pure plays face significant challenges:

– They must compete as new brands.

– They may need to take customers away from established businesses.

Performance Metrics Inform Strategy

– Provide measurable outcomes.

It can motivate employees to make decisions that lead to desired outcomes.

– Click throughs from advertising.

– Website server logs

The Balanced Scorecard provides 4 perspectives.

The Customer Perspective Scorecard

– Number of customers who use the service

The Learning & Growth Perspective Scorecard

– Number of new service products to

– Number of customer complaints and

– Number of conversions from online leads

The Financial Perspective Scorecard

– Sales growth and market share.

Brand Health Metrics

• Tagging, bookmarking or “likes”

Action & Innovation Metrics

– Click-through to an advertiser’s site.

– Number of ideas shared.

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