MAR 4933001

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MAR 4933-001

• E-Commerce Marketing
• Summer 2003
• E-Commerce Marketing and Innovation
• Rich Gonzalez
• University of South Florida
• May 22, 2003

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URLs

• wsj.com
• ebay.com
• pages.ebay.com/community/aboutebay/overview/index.
  html
• www.hammertap.com
• www.acomp.usf.edu/wireless.html

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Agenda May 22, 2003

• Marketing, Innovation and Technology
• Online Video Game Industry
• Nokia 9290Class Exercise
• eBay
• Usability--Preview
• Due For May 26

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Web Site/Biz Model EvaluationDue June 24

• 1. Nielsen Framework For Evaluation
• 2. Textbook Criteria For Business Model
• We will cover all this in the next 4 weeks...

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For Today May 22

• EBay to Launch Loyalty Program, wsj.com, May
  20, 2003, David Bank
• Disney to Test Movie Technologies, wsj.com, May
  20, 2003, Associated Press
• Nokia 9290 Inquiry

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For May 27

• EBay Revenue, Profit Soar, Despite Tough
  Environment, April 23, 2003, Nick Wingfield
• Visit eBay Site and Learn About It
• Weekly Analysis Paper 1 (PayPal)

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Last Time

• Class Exercise On Consumer Information (NYCDOH)
• Jukebox Music A Digital Product
• Encyclopedia Britannica

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Kinds Of (Useful) Consumer Information

• Red Team
• 1. Hospital Physician Info
• 2. Auto Mechanics
• 3. Grocery Stores

• Blue Team
• 1. Doctors credentials, performance
• 2. Mfrs.Child Labor Used
• 3. Driver Information

In Class Exercise
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What Should Smart Marketers Do?

• Red Team
• 1. Develop surveys to establish importance rating
• 2. Websites in auto mags, and online, JiffyLube
• 3. Coupons, inspection ratings

• Blue Team
• 1. Partner with insurance companies--referrals
• 2. Add to Consumer Reports site
• 3. Should be a billboard or DMV

In Class Exercise
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Stewart Brand

• Information wants to be free.
• Information wants to be expensive.

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(No Transcript)
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Videogame Industry Developing a New Product

• Video Giant Electronic Arts Links With Sony,
  Snubs Microsoft, wsj.com, May 12, 2003, Robert
  A. Guth
• Someone Told Microsoft, NO!
• Who Plays Videogames?

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Videogame Industry

• Competing royalty models
• 27 Billion, Worldwide
• 10 Billion, U.S.
• Video game Addiction/Popularity
• Loyalty
• Accomplishment/Status
• Target Market Can Be Expanded---Were building
  something big.

In Class Exercise
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Videogame Industry

• Electronic ArtsProfits High
• Changing Business Scope
• Exclusivity, Non-exclusivity
• Who Controls the Customer Relationships
• EA MS Collects all the money, and they keep all
  the money!

In Class Exercise
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Takeaways of Video Game

• Atoms to Bits(Box, Manual, CD) to Logon Only
• Product to Service
• Per/Product to Per/Period(Subscription
  Model)
• Video Giant Electronic Arts Links With Sony,
  Snubs Microsoft, wsj.com, May 12, 2003, Robert
  A. Guth

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Industry Model Plan A

• Publishers

Publishers
Retailers
Customers
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Industry Model Plan M

• Publishers

Publishers
Microsoft
Customers
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Industry Model Plan S

• Publishers

Publishers
Sony
Customers
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Brands

• Electronic Arts
• Sony
• Playstation2
• Xbox
• Microsoft
• Tiger Woods
• PGA Tour

• John Madden
• NFL
• Nintendo
• Game Cube
• Harry Potter
• James Bond
• Grand Theft Auto

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Objective Question Example

• In our discussion of the wsj.com article about
  Electronic Arts, a videogame manufacturer, one of
  the big trends in e-commerce is to take a
  consumer product that people have been buying and
  transforming it to a service. One big benefit of
  this to the marketing company is that
• a) It is cheaper to produce services.b)
  Financing service business models is easier.c)
  Drucker believes services create customers.d)
  Pricing for services can be done on a
  subscription basis.e) Generally, customers like
  services more than products.

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(No Transcript)
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For January 27

• Chapter 8 The Market
• Blown To Bitsp1-97
• Weekly Analysis Paper 1
• Purchase the WSJ Online-- 60 Day DemoDo not
  start it up yet

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A Step Toward E-Commerce???
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Nokia 9290 Features/Functions/Other

• Cell phone
• Wireless Office
• Wireless E-mail
• Full QWERTY kbd
• A/V Transfer Cap.
• HTML 3.2 Browser
• 10 hrs talk time
• 9 days standby

• Conference calling 5 people
• MS Windows Compatibility
• Symbian OS
• Flash/ Real Audio
• 4096 colors
• PDA

In Class Exercise
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Nokia 9290 Features/Functions/Other

• 8.6 ounces
• The Brick
• FTP Server
• PowerPoint
• IRA port
• Games
• Needs accessory Cables

• 56 MB of Memory
• Expandable memory
• Speakerphone
• 399-599
• Speed 14.4 kb/s

In Class Exercise
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Nokia 9290 Uses/Benefits

• Accessibility
• Time Saving
• Reliability
• Flexibility

In Class Exercise
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BandwithConsumer Context

• Dialup
• ISDN
• Cable
• DSL
• T1
• 802.11b
• 3G

• 56 K
• 128 K
• 150 to 300 K
• 100 to 500 K
• 1400 K
• 300 to 500 K
• 144 K

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A Step Toward E-Commerce?
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(No Transcript)
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A Major Trend-- 802.11b
Library
COBA

• www.acomp.usf.edu/wireless.html

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• www.acomp.usf.edu/wireless.html

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• Business is going to change more in the next 10
  years than it has in the past 50.
• William H. Gates III, 2000

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Hewlett-Packard

• E-Commerce Software
• Brick Mortar Stores
• Standing Near Store (Entrance)
• Use PDA
• Store Beams Information to UserInto Handheld
• Also For Cell Phones

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EBay to Launch Loyalty Program

• wsj.com, May 20, 2003, David Bank
• What is important?
• Goal Expand Customer Base
• Marketing Innovation?

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eBay

• Howd it start?
• What is eBay?
• Important ComponentsMissionTarget
  MarketInformationFeedbackCommunityInventory
• 16 minute Video Shown In Class
• Discussion About What eBay Is

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eBay Mission and Market

• To help practically anyone trade practically
  anything on earth.
• Market
• http//pages.ebay.com/community/aboutebay/overview
  /index.html

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PayPal

• What is it?
• Why is it important?
• Who are the customers?
• What are the effects?
• Think of these questions when doing Paper 1

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Weekly Paper 1

• Subject PayPal
• CriteriaBusiness ModelTechnologyMissionTarget
  Market
• Length 1.5 Pages
• Cover sheet
• Bolded Headings
• Format As Described In Class Counts!