MAR 4333521

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MAR 4333-521

• E-Commerce Marketing
• Fall 2002Sarasota
• Market Opportunities
• Rich Gonzalez
• September 14, 2002 (Week 3 Saturday)

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URLs

• www.britannica.com/
• coba.usf.edu
• www.acomp.usf.edu/wireless.html
• ebay.com
• www.paypal.com
• www.carpoint.com

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Textbooks

• REQUIRED TEXT
•  E-Commerce Marketing
• introduction to e-commerce, Rayport Jaworski,
  McGraw Hill/Irwin (2002). ISBN-0072510242
•  
•  

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Agenda September 14, 2002

• ebay.com Demo
• Market Opportunity
• Site/Model Evaluation--Peruse
• Due For September 21

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For Today September 14

• Chapter 1
• Chaper 2 Skim only
• Chapter 3

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For September 21

• Chapter 4Framing the Market Opportunity
• Framework for Market Opportunity Exhibit 4-1
• Consumer Buying Process, Exhibit 4-3
• On What Customers Want. p.110
• Fashionably Late p.100
• Analysis Paper 1

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A Step Toward E-Commerce?
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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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Online Retailing Fact

• 65 of (virtual) shopping carts are abandoned
  before checkout
• Why?

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E-Commerce Is Important
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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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Marketing Concept

• Target Market
•  Customer Needs Wants
•  Coordinated activities
•  Profitability

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Search Engines

• March 2002Jupiter Media Metrix
• 114 Million Internet Users At Home Or Work
• 80 Made a Search
• www.searchenginewatch.com/reports/mediametrix.html

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State of Online Retailing 5.0

• Report by BCG

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Online
Retailing Facts

• Compiled by Boston Consulting Group
• for shop.org (trade assoc. of online merchants)
• 2001 online revenue by North American retailers
  51.3 billion
• 2001 21 over 2000
• 2002 43 over 2001

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Online Sales

• 2001 Online sales 2.4 Of Total
• 2002 Online Sales 3.2

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A Step Toward E-Commerce?
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A Trend? 802.11b
N
Library
COBA
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Wi-Fi

• Hot SpotsOffices, Cafes, Parks
• 4 Million Using Now, Worldwide
• Estimate 45 Million Business Laptops-- 2004
• Estimate 4.2 Million Households Have Wireless--
  2004
• Max Speed 11,000 K

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Why Is E-Commerce Important?
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E-Commerce Marketing Is...

• ...an efficient way to bring many more buyers
  and sellers together to create a global
  marketplace that otherwise would be impossible.
• Student, MAR 4333-521

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3 Fundamental Business Shifts

• 1. Most transactionsB2C, B2B, C2C and G2C will
  become self-service digital transactions.
• 2. Customer service will become the primary
  value-added function in every business. Personal
  consultancy not routine services.
• 3. The pace of transactions and customer needs
  for customer service will force firms to adopt
  digital processes---for survival.

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RAF vs. FRA

• Ready, Aim, Fire!
• Fire, Ready, Aim

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The C2C Example

• Pierre Omidyar
• Pez Dispensers
• New Marketspace

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ebay.com Mission

• Help anyone trade practically anything on earth.

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ebay.com

• How do they do this?
• 1. Technology
• 2. Customer Orientation
• 3. Information Usage
• 4. Value
• 5. Community
• 6. Fun

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Demo of ebay.com
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Table 11 Four Categories of E-Commerce

• Business originating from . . .

• Business

• Consumers

• B2B

• C2B

• Business

• And selling to . . .

• B2C

• C2C

• Consumers

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Framework for MO Microsoft CarPoint Example

• MSN CarPoint identified an opportunity to
  leverage the Internet to deliver customer value
  in the car industry

Leverage the Internet to Improve the Consumer
Car-Buying Process

• The retail car-buying process was frustrating
  and inefficient
• Little information available to the consumer
• Bargaining with salesperson viewed as a hassle
• Long process overall

Car Buyers Are Dissatisfied With Current Retail
Car Buying Process

• MSN CarPoint selected two primary target
  segments for its service
• The intimidated by the process
• The information seekers

Shoppers Who Feel Intimidated by Sales People and
Look for More Efficient Way
Microsofts Software and Free Placement on All
Its Websites

• MSN CarPoint could leverage Microsofts
  expertise in software development, the Microsoft
  brand name and its multitude of online properties

• Competition was getting fierce with more and
  more online car services entering the market
• But the financial opportunity was large 66 of
  new car buyers used online services in 2000

How Big Is the Online Car-Buying Market? Who Are
CarPoints Main Competitors?

• In 1996 the first version of CarPoint was
  shipped
• By 1998, CarPoint was driving 5 million in car
  sales a day

Make Go / No-Go Assessment
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Exhibit 16 A Flow Diagram of the Strategic
Responsibilities
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Business Model

• Value Proposition
• What you give and what you get
• Value and Revenues

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Customer Orientation

• A philosophy incorporating the marketing concept
  that emphasizes first identifying unmet needs,
  then satisfying them.
• Marketing Mantra
• 3--Know your customer(s).

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Customer Orientation

• MetricsCustomer AcquisitionMarket
  ShareCustomer SatisfactionCustomer Profitability

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Customer Satisfaction

• Definition?
• Performance Expectations CS

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Customer Orientation Del Monte

• Phone On Package
• Our hours of operation are ....click
• All of our agents are currently...
• Our agents are still busy...
• Our agents are still ....
• Please leave your name and a phone
  number....within 24 hours. ltbeepgt
• 40 minutes later, call back
• No change in product
• No we cannot check

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Quote and Revision

• There is only one boss the customer. And he can
  fire everybody in the company...by spending his
  money somewhere else. Sam Walton
• Only one person controls the mouse the
  customer. And he can fire everybody in the
  company...by clicking and going to some other
  site to spend his money. R. Gonzalez

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Customer Decision Process

• Origination (Recognize Problem)
• Information Gathering
• Evaluation
• Purchase Decision
• Postpurchase Results

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1 to 1 Marketing

• Personalization
• Customization

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PayPal

• What is it?
• Why is it important?
• Who are the customers?
• What are the effects?

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Analysis Paper 1

• Subject PayPal
• Criteria (use bolded headings)Business
  ModelTechnologyMissionTarget MarketCustomer
  Benefits
• Length 1.5 Pages -------125 points
• Due on Sep. 21 ------Hard Date

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