Effects of Word-of-Mouth Versus Traditional Marketing - Example

Details of Assessment Term and Year 1, 2017 Time allowed 7 Weeks Assessment No 1 Assessment Weighting 100% Assessment Type e-Marketing Plan Due Date Week 7 Room TBA Details of Subject Qualification BSB51915 Diploma of Leadership and Management Subject Name Marketing Details of Unit(s) of competency Unit Code (s) and Names BSBMKG510 Plan E-Marketing Communications Details of Student Student Name College Student ID Student Declaration: I declare that the work submitted is my own, and has not been copied or plagiarised from any person or source. Signature: ___________________________ Date: _______/________/_______________ Details of Assessor Assessor’s Name MOINUL MUSTAFA  ROBERT CUTULI  Assessment Outcome Results  Competent  Not Yet Competent Marks / 100 FEEDBACK TO STUDENT Progressive feedback to students, identifying gaps in competency and comments on positive improvements: ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Student Declaration: I declare that I have been assessed in this unit, and I have been advised of my result. I am also aware of my right to appeal and the reassessment procedure. Signature: ____________________________ Date: ____/_____/_____ Assessor Declaration: I declare that I have conducted a fair, valid, reliable and flexible assessment with this student, and I have provided appropriate feedback  Student did not attend the feedback session. Feedback provided on assessment. Signature: ____________________________ Date: ____/_____/_____ Purpose of the Assessment The purpose of this assessment is to assess the student in the following learning outcomes: Competent (C) Not Yet Competent (NYC) Develop an e-marketing plan for at least ONE product or service, that meets all legislative and organisational requirements, and contains: an action plan a schedule costing a monitoring strategy evaluation methods Assessment/evidence gathering conditions Each assessment component is recorded as either Competent (C) or Not Yet Competent (NYC). A student can only achieve competence when all assessment components listed under “Purpose of the assessment” section are recorded as competent. Your trainer will give you feedback after the completion of each assessment. A student who is assessed as NYC (Not Yet Competent) is eligible for re-assessment. Resources required for this Assessment Computer with relevant software applications and access to internet Weekly eLearning notes relevant to the tasks/questions Instructions for Students Please read the following instructions carefully This assessment has to be completed  In class  At home The assessment is to be completed according to the instructions given by your assessor. Feedback on each task will be provided to enable you to determine how your work could be improved. You will be provided with feedback on your work within two weeks of the assessment due date. All other feedback will be provided by the end of the term. Should you not answer the questions correctly, you will be given feedback on the results and your gaps in knowledge. You will be given another opportunity to demonstrate your knowledge and skills to be deemed competent for this unit of competency. If you are not sure about any aspects of this assessment, please ask for clarification from your assessor. Please refer to the College re-assessment for more information (Student Handbook). ASSESSMENT ACTIVITY: E-MARKETING STRATEGY/PLAN INSTRUCTIONS: You are required to produce an E- Marketing Plan/Strategy for a Small Business, product or service of your choice. Types of business and product/services that you may wish to choose may include (but not limited to): An online clothing store or departmental store An online sports bet company A food delivery company An online grocery store A deals website (similar to ozbargain) A small electronics company (manufactures electronic accessories) An online printing and publishing company A bookstore A web hosting & domain selling company A cloud service provider However, the scope and choice of the business, product or service is not limited to the list above and you may wish to use a business, product or service at your discretion. You do not require any information from this business to undertake this assessment as it is your delegated task to research and provide and implement an E- Marketing Plan/Strategy for the business, product or service based on the assumptions you have made during your research. Using the e-Marketing template & the structure as provided below, develop a full version of the E-Marketing Plan/Strategy. E-MARKETING PLAN STRUCTURE 1. Executive Summary 2. Introduction 3. Situational Analysis a. SWOT Analysis b. 4 C’s Analysis c. Issues Identified 4. The e-Marketing Schedule - Gantt Chart or Timeline for the e-Marketing Plan 5. The e-Marketing Strategies & Action Plan a. product strategies b. price strategies c. promotion strategies d. distribution strategies 6. Costing and Budget 7. Technical Issues a. website content & searchability b. Customer registration & logging security (for customers and staff) c. Coupon codes, rewards for old clients, discounts d. multimedia e. autoresponders f. order forms and feedback forms g. access levels to online resources h. credit card transactions i. website hosting j. website publishing k. technical staff (size, requirements) 8. Monitoring Strategy 9. e-Marketing Evaluation methods 10. Appendix 11. Bibliography & References GENERIC GUIDELINES FOR REPORTING Include any Supplementary Documents utilized All sources are referenced consistently and comprehensively using the recommended referencing system as prescribed in the subject description/outline. Use of language is appropriate to academic writing, the industry context, Marketing themes and principles and the assessment criteria The responses are succinctly and clearly written or presented in English Overall presentation is professional including spell and grammar checked judicious use of headings, font size, layout etc. E-MARKETING PLAN – COMPANY NAME Prepared by: Date: EXECUTIVE SUMMARY Provide an executive summary of at least 300 words. The summary should include: Overview of the organisation The product or service you decided to prepare an e-marketing plan for The target market of the product or service Key objectives of your e-marketing plan Blue Sky Company Limited is an Australian online company that was started by Lisa Dembsky in 2914. The company sells modern high quality clothing, which men and women can wear on a daily basis. The sold clothes are neutral coloured—that is, made of greys, whites and blacks—and the used material is normally sourced from the ethical suppliers. The clothing can be purchased mostly online or in one of their stores all over Melbourne, Sydney, and London. Blue Sky’s Company Limited has a great demand for its products and research has revealed that the target market of sports retailers and sport-minded consumers prefer purchasing much casual clothing than what is currently offered by the company. The company is also interested in extending its product line and adds new product lines. Again, the company is planning to explore different online opportunities or sales. The marketing environment is receptive to the high quality products, which include trendy colours that have slogans and logos, which reflect outdoor enthusiast’s interests across the country. Similarly, Blue sky company Limited is committed to give back to the community by contributing to the programs of conservation. The company is also interested in developing and funding its environmental programs. TABLE OF CONTENTS PAGES 1. Executive Summary 2. Introduction 3. Situational Analysis SWOT Analysis 4 C’s Analysis Issues Identified 4. The e-Marketing Schedule Gantt Chart or Timeline for the e-Marketing Plan 5. The e-Marketing Strategies & Action Plan product strategies price strategies promotion strategies distribution strategies 6. Costing and Budget 7. Technical Issues website content & searchability Customer registration & logging security (for customers and staff) Coupon codes, rewards for old clients, discounts multimedia autoresponders order forms and feedback forms access levels to online resources credit card transactions website hosting website publishing technical staff (size, requirements) 8. Monitoring Strategy 9. e-Marketing Evaluation methods 10. Appendix 11. Bibliography & References INTRODUCTION Your introduction should include: 1. Mission, Vision and objectives of the organisation in regard to the product or service The objectives need to be SMART (Specific, Measurable, Attainable, Relevant and Timely). When defining these objectives think about the following: What the ‘Return on investment’ will be? This may include increased customer spend, greater brand awareness, an increase in visits and online registrations, etc. How you quantify and measure the success of your plan will depend on your business and marketing objectives. This will differ from business to business. Define objectives for each part of the customer journey - Awareness, Acquisition and Conversion. Your plan needs to look at the whole customer journey. Make sure that your objectives reflect exactly what you will be measured on (KPI’s). 2. Summary of strategies and tactics to be used - Once your objectives have been defined, you need to provide a top level summary of your Strategy – outlining how you are going to use digital marketing to meet them. The strategy should summarise the ‘bigger picture’ without yet going into the detail. It should explain the concept behind the tactics, providing a general overview of the techniques to be used. 3. A brief summary of the marketing environment for this product or service 4. Projected outcomes and ‘return on investment’. Details can be included in budget or costing section. Mission, Objectives: The mission of Blue Sky is to become a leading marketer and producer of casual, personalized clothing for the outdoors consumers. The company wishes to inspire individuals to often get outdoors and enjoy friendly and family while doing so. Moreover, the company is committed to designing programs to preserve the natural environment. Other Objectives: Increase revenues by about 50 per cent yearly Get finance to expand manufacturing capabilities, introduce two product lines and increase distribution Donate 30 000 dollars to the conservation organizations To enter newer markets such as the mid-Atlantic and south-western states To improve the internet sites to increases sales Summary of Strategies and tactics to be used: Over two years, the company is planning on expanding its product line to entail the customers clothing items. Customers will have to choose a logo, which represents their sport. Moreover, the company plans to expand the product line by providing items of the lightweight luggage. Again, each product shall bear the logo of the company. Summary of Marketing Environment: The marketing environment of Bluesky represents numerous opportunities. Also, it has several changes which a firm thinks it can overcome successfully. the management has a responsibility to protect itself against competitors who will try to duplicate its products. Nonetheless, building a strong relationship with retailers, consumers, suppliers will help in thwarting the competitors. Projected outcomes on Return of Investment: The projected income of the company is 3.2 million US dollars. SITUATION ANALYSIS The situation analysis needs to set the context for the plan. It should include an analysis of the micro (internal) and macro (external) environment. Address each of the following: Digital specific SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) or PESTLE analysis A summary of the 4 C’s (focussed on digital): Customer (characteristics, behaviours, needs, wants) Company (benchmark your current online proposition) Competitors (benchmark your competitor’s performance) Change (Political, Economic, Social and Technological factors) Summary of the key issues that have emerged Where possible use qualitative and quantitative data to support your analysis Use images, charts and graphs to illustrate your findings SWOT ANALYSIS / PESTLE ANALYSIS: Situation Analysis The marketing environment of Bluesky represents numerous opportunities. Also, it has several changes which a firm thinks it can overcome successfully. Appendix 1 reveals a SWOT analysis for the company, which was conducted by the markets to reveal the weakness, strengths, threats, and opportunities of the company. The SWOT analysis shows a sketch of the position of the company in market place. In only on year Bluesky has built numerous strengths while embracing new opportunities. 4 C’s OF MARKETING ANALYSIS: Customer: The market for the company comprises of the consumers who are aged between 20-45 years old. These are the people who can rock climb, hike, surf, bicycle, in-line skate, snowboard, kayak, and others. These groups have successful and well-educated people who are either raising families, married or single. Their household revenues range from 60,000-120,000 dollars. Even though they have comfortable lives, the consumers are consistently seeing for values on the purchased products and are price conscious. Company: The dedicated founders of the company, sound financial, management and the ever increasing loyal customers have placed the company in a better growth position. Nonetheless, Bluesky company is considering product line expansion and new markets entrance, and it has to protect itself against the myopia of the market—the failure of understanding the business scope and the slippages of quality. Nonetheless, building a strong relationship with retailers, consumers, suppliers will help in thwarting the competitors. Competitors: L.L. Bean, Timberland, Cabello’s, REI, Bass Pro Shops, and Patagonia are the major companies that offer these products Change: With the current finalization of the company’s plans for introduction of new products and an increase in internet sales, the management has a responsibility to protect itself against competitors who will try to duplicate its products. E-MARKETING SCHEDULE Your e-Marketing schedule should include a timeline or Gantt chart to explain the activities of your plan to be completed within a specific timeframe (e.g. 10 weeks). Put a X sign in the specific grid(s) that relates to your activity. e-Marketing Activities Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Week 9 Week 10 Introduce new products x Increase internet sales x building a strong relationship with retailers x Enter new markets x THE E-MARKETING STRATEGIES & ACTION PLAN The Strategies and Action Plan section should address the electronic marketing strategies of your product or service based on the 4Ps. Also address how each of the following strategies will comply with the Australian e-Marketing Code of Practice. Product strategies: At present, the company is offering a line of increased quality outdoor apparel items, which includes baseball caps, T-shirts, jackets, and fleece vest. All the products bear the name of the company ‘’GET THE FUN’. The company researched the most common colours for its items and provided the names, which consumers enjoy: sunrise pink, sunset red, river rock gray, cactus green among others. Over two weeks, the company is planning on expanding its product line to entail the customers clothing items. Customers will have to choose a logo, which represents their sport. After that, they may add a slogan, which matches the logo. To begin with, there will be about 20 new logos and 10 new slogans; others shall be added later. As a result, there are some logos and slogans that are going to be retired and new ones will be introduced. This move shall keep the concept relevant and avoid its dilutions with different variations. Moreover, the company plans to expand the product line by providing items of the lightweight luggage. This will include daypack, 2 sizes of the tote bags and two duffel bags sizes. The items shall come in basic colours trendy with slogans and logos choice. Again, each product shall bear the logo of the company. Price strategies: At present, the company is marketed through online and the local specialty and regional shops which are scattered along Sydney, Melbourne, and London. Season and climate appear to docate what s sold by the company. In the next 2 years, the company expects to expand its sales across the world. The online sales shall be expanded by providing customized products through the internet. Internet kiosk might be placed at the several profitable stores so that customers can offer the customized products. Above all else, the company is planning to maintain and monitor strong relationships with its members of the distribution channel. Promotion strategies: The company communicates with its customers and retailers about its services and products in different ways. Information about the company is always available via the direct mailings, the internet and even in person. The promotional efforts of the firm seek to also different entirely its products from the competitors. The company is relying on personal contact with the various retailers to establish its products. Such contact is by phone or by in person, which helps it to obey its message, demonstrate its unique qualities, products, and build long lasting and fruitful relationships (Trusov, Bucklin & Pauwels, 2009). The public relations and promotions do make up the majority of the promotional strategy of the company. The staff always works with retailers to provide sales promotions, which are tied to contests and event. Distribution strategies: The firm is not always concerned with setting higher prices to show luxury nor does it attempt to have objectives to offset low prices through the sale of high qualities of products. The company practices value pricing to make consumers comfortable purchasing new products to replace the old ones—even when it entails replacing the cloths. The company’s pricing strategy makes its products to be god gifts for graduations and birthdays. The customized clothing is going to sell 4 dollars more compared to regular logo clothing. BUDGET & COSTING FOR THE E-MARKETING PLAN This section of the plan will outline your budget & costing. This is best presented as a single spreadsheet or table with tactics broken down by awareness, acquisition and conversion. Provide specific detail on the following: 1. Your total cost breakdown (overall spend across tactics) 2. Weekly phasing of budget spend across all tactics 3. Any financial KPI’s and milestones that need to be reached 4. Phased return on investment across tactics 5. A summary on the estimated financial benefits from this e-Marketing Plan For the last bullet point you need to estimate projected channel outcomes. This will include estimates on how much traffic will be generated from each tactic and the number of prospects that will likely go onto convert. In addition a ‘Sales and profit’ analysis can be used to help you quantify the net profit that your e-Marketing plan will generate. Strategies and Action Plan section should address the electronic marketing strategies of your product or service based on the 4Ps. Despite the fact that the history of the company is short, the company has enjoyed an increase in sales since its inception two years ago. The flowing figure reveals the 3 years plus the projected budget for the coin three years, which includes the introduction of 2 more product lines. In Appendix 2, there is timeline for outlets expansion, and two new product line, introduction, implementation of these tasks is going to be monitored and even evaluated E-MARKETING TECHNICAL ISSUES This section should clarify the technicalities of your e-marketing plan. The section should include the following (add more issues if required): website content & search ability Customer registration & logging security (for customers and staff) Coupon codes, rewards for old clients, discounts multimedia auto responders order forms and feedback forms access levels to online resources credit card transactions website hosting website publishing technical staff (size, requirements) Delivery information is provided and options. The details help the customers to decide to purchase products on the internet. The products are delivered next day if it is to be transported for a long distance. The cost of delivery are also provided, and a return option is available. The website has a good visualization and context. The products sold are described and images of clothes, which are nice looking, attract customers. THE E-MARKETING MONITORING STRATEGY & EVALUATION METHODS The final part of plan should explain and describe how you will monitor the e-Marketing plan when it is activated. You will also have to describe the methods you will use to measure the success or failure of your e-marketing plan for the product or the service. Monitoring Strategy: The marketing committee shall keep minutes of specific activities and meetings, report periodically to the higher management and probed the necessary leadership when required. The company will organize training and communicate to its workforce about the importance of working towards achieving the discussed goals. The company shall task the marketing manager to form a committee that will foresee the execution of the plans. Evaluation Methods: The company will observe its sales to find out if the goals are being achieved. The daily reporting and minutes of the marketing committee will observed to analyse the progress of the adopted changes. APPENDIX Include any attachments, facts, figures, pictures, diagrams, brochures, web screenshots, etc that you have discussed in your plan and may relate to explain the e-marketing plan more clearly. Appendix 1 Appendix 2 Appendix 3 REFERENCES USED IN THE E-MARKETING PLAN Trusov, M., Bucklin, R. E., & Pauwels, K. (2009). Effects of Word-of-Mouth Versus Traditional Marketing: Findings from an Internet Social Networking Site. Journal of Marketing, 73, 90-102. http://dx.doi.org/10.1509/jmkg.73.5.90 Di Pietro.L. & Pantano.E. 2012. An Empirical Investigation of Social Network Influence on Consumer Purchasing Decision: The Case of Facebook. Journal of Direct Data and Digital Marketing Practice, 14, 18-29 Cheong.H. J. & Margaret.A. M. 2008. Consumers’ Reliance on Product Information and Recommendations Found in UGC. Journal of Interactive Advertising, 8, 38-49. Philip.K. & Armstrong.G. 2012. Principles of Marketing. Pearson Education Limited. Marich, R. (2013). Marketing to moviegoers: A handbook of strategies and tactics. Carbondale: Southern Illinois University Press. Krishnamurthy, S. (2006). Introducing E-MARKPLAN: A practical methodology to plan e-marketing activities. Business Horizons. 49(1), 49, 51, 60. Read More