The aim is not to predict, but to explore a set of possibilities; scenarios take different situa-
tions with different starting points.
Lynch distinguishes qualitative scenario-based planning from quantitative prediction
such as that of Activity 4.3 (see page 171). In an Internet marketing perspective, scenar-
ios that could be explored include:
1 One player in our industry becomes dominant through use of the Internet
(‘Amazoning’ the sector).
2 Major customers do not adopt e-commerce because of organisational barriers.
3 Major disintermediation (Chapter 2) occurs in our industry.
4 B2B marketplaces do or do not become dominant in our industry.
5 New entrants or substitute products change our industry.
Through performing this analysis, better understanding of the drivers for different views
of the future will result, new strategies can be generated and strategic risks can be assessed.
It is clear that the scenarios above will differ between worst-case and best-case scenarios.
As a starting point for setting specific objectives, it is useful to think through the ben-
efits of the Internet channel so that these benefits can be converted into objectives. It is
useful to identify both tangible benefits, for which monetary savings or revenues can be
identified, and intangible benefits, for which it is more difficult to calculate financial ben-
efits and costs, but are still important, for example customer service quality. Table 4.2
presents a summary of typical benefits of Internet marketing.
An alternative way of thinking through the benefits, is to review the 5 Ss of Smith
and Chaffey (2005) who suggest there are five broad benefits of e-marketing:
Sell– grow sales (through wider distribution to customers you can’t service offline, or
perhaps through a wider product range than in-store, or better prices).
Serve– add value (give customers extra benefits online, or inform them of product
development through online dialogue and feedback).
Speak– get closer to customers by tracking them, asking them questions, conducting
online interviews, creating a dialogue, monitoring chat rooms, learning about them.
Save– save costs of service, sales transactions and administration, print and post. Can
you reduce transaction costs and therefore either make online sales more profitable orSTRATEGIC GOAL SETTINGTable 4.2 Tangible and intangible benefits from Internet marketing
Tangible benefits Intangible benefits
Increased sales from new sales leads giving Corporate image communication
rise to increased revenue from: Enhance brand
new customers, new markets More rapid, more responsive marketing
existing customers (repeat-selling) communications including PR
existing customers (cross-selling) Improved customer service
Learning for the future
Cost reductions from: Meeting customer expectations to have a
reduced time in customer service web site
online sales Identify new partners, support existing
reduced printing and distribution costs of partners better
marketing communications Better management of marketing information
and customer information
Feedback from customers on products