MAR 6936902

1
MAR 6936-902

• E-Commerce Marketing
• Spring 2003Downtown--MBA
• Doing Business On the Net
• Rich Gonzalez
• January 16, 2003 (Week 2)

2
URLs

• lists.acomp.usf.edu
• my.usf.edu
• http//pages.ebay.com/community/aboutebay/overview
  /index.html
• www.hammertap.com
• www.acomp.usf.edu/wireless.html
• www.searchenginewatch.com/reports/mediametrix.html
  
• retailindustry.about.com/library/weekly/02/aa02061
  2a.htm

3
Agenda January 16, 2003

• LISTERV
• Due For January 23
• Nokia 9290Class Exercise
• Survey Results
• Innovation and Technology
• Search Engines
• eBay Revisted
• Usability

4
LISTSERV

• xhttp//lists.acomp.usf.edu

5
Web Site/Biz Model Evaluation

• 1. Nielsen Framework
• 2. Textbook Criteria

6
WSJ Online

• A Good Resource
• 4.95 for 60 Day Trial
• 10 Points
• Do not start up service yet.

7
Textbooks

• Required TEXT
• Blown to Bits How the New Economics of
  Information Transforms Strategy, Harvard
  Business School Press, Evans Wurster (2000).
  ISBN 087584877x
•  

8
Price Shopping On Books

• ebay.com
• www.half.com
• bibliofind.com
• ebs.allbookstores.com
• www.bigwords.com
• Anyone find a good deal on the Blown To Bits?

9
For Today January 16

• Chapter 1
• Chapter 2--- SKIM (read www)
• Mini-Investigation of Nokia 9290
• Purchase the WSJ Online 60 Day DemoDo not start
  it up yet

10
For January 23

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

11
Survey Results 6936-798

• Age 30.3
• TracksFinance, Marketing, MGMT
• 27 Full Time Students

12
Survey ResultsBest Website 6936-798

• 3-- yahoo.com, southwest.com
• 2 amazon.com
• 1disney.com, travelocity.com, usair.com,
  espn.com, ebay.com, google.com, patent trade
  office

13
Survey ResultsWorst Website 6936-798

• www.priceline.com (2), msn.com (2)
• www.usf.edublackboardhotmail.comsprintpc.comeb
  ay.comspiritairlines.commiami.comwww.bn.comrea
  ltor sites

14
Survey Results--Internet

• Everybody is using the Internet
• Internet usage range is 3-35 hr/wk
• Average 16.3 hr/wk
• Is that a lot?
• U.S. Average 6.5 hr/wk
• FA 2002 MBA 20.6 hr/wk
• SP 2003 MBA 18.3 hr/wk (Tampa)
• Broadband at home 53
• U.S. Average 22
• Broadband at home 83 (Tampa)

12/29/02
15
A Step Toward E-Commerce???
16
Nokia 9290 Features/Functions/Other

• Symbian OS
• New Interface
• Telephone
• Speakerphone
• 10 Hr talk time
• 9 standby
• Wireless Internet Access

• 640x200 Active Matrixt
• Hot Keys vs. touch screen
• Memory cards
• 599 delvd
• 449 with T-Mobile
• WAV file ringing

In Class Exercise
17
Nokia 9290 Features/Functions/Other

• PC Compative
• Outlook
• Lotus Notes
• Word, Excel, PowerPoint
• PDA
• Digital Network
• Qwerty keyboard

• email
• Fax
• Digital camera connectivity
• Conference calling
• 14,400 bits/second
• 14.4 Kb/sec
• MP3

In Class Exercise
18
Nokia 9290 Uses/Benefits

• Mobility
• Portabilty
• Convenient access to all sorts of business
  communications/functionality
• Another silent mode of communication

• Multi-tasking
• Space saving
• Entertainment
• Cost effective
• Status/Prestige

In Class Exercise
19
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

20
A Step Toward E-Commerce?
21
A Trend-- 802.11b
Library
COBA

• www.acomp.usf.edu/wireless.html

22
E-Commerce

• What is it?
• Why is it important?

23

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

24
Marketing Concept

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

25
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.

26
Search Engines

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

27
Search Engines--Popularity

• March 2002
• 37.0 MSN
• 34.0 Yahoo!
• 28.9 Google
• 22.4 AOL
• 15.7 AskJeeves
• 9.2 LookSmart

• Oct 2002
• 29.2 Google
• 28.5 Yahoo!
• 28.1 MSN
• 19.7 AOL
• 10.3 AskJeeves
• 5.5 Netscape

28
Search EngineAvg. Minutes

• 36.4 AOL
• 25.7 Google
• 11.6 Earthlink
• 11.1 Infospace
• 10.0 AskJeeves
• 10.8 Yahoo!
• 8.6 MSN

October 2002
29
Search EnginesBest Metric Millions of Hours

• Mar 2002
• 11.7 Google
• 6.5 Yahoo!
• 4.8 AskJeeves
• 4.0 MSN
• 2.9 AOL
• 1.9 AltaVista

• Oct 2002
• 16.1 Google
• 15.4 AOL
• 6.6 Yahoo!
• 5.2 MSN
• 2.2 AskJeeves
• 1.2 Infospace

30
State of Online Retailing 5.0

• Report by BCG

31


Online
Retailing Facts

• Compiled by Boston Consulting Group
• for shop.org (trade assoc. of online merchants)
• survey of 221 of 412 members
• 2001 online revenue by North American retailers
  51.3 billion
• 2001 21 over 2000
• 2002 43 over 2001 (est.)

32
Online Sales

• 2001 Online sales 2.4 Of Total
• 2002 Online Sales 3.2 (est.)

33
E-Commerce Drivers of Profitability

• Increased consumer spending online
• operational performance improvements, Marketing
  efficiency
• Increased Repeat Online Buyers
• Tighter Expense Control

34


Online Retailing
FactsCustomer Acquisition Costs

• 2001 14
• 2000 29
• 1999 38

35


Online Retailing
FactsConversion Per Visit Percentages

• 2001 3.1
• 2000 2.2
• 1999 1.8

36
So Online Sales Are Doing Well?

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

37
E-Commerce

• Consists of using electronic information-based
  systems to engage in transactions or commerce
  online.
• Kleindl

38
E-Commerce Marketing

• the entire process of using innovation to
  create a product and get it in the hands of
  someone who wants it...

39
E-Commerce Marketing

• is also closing geographic boundaries and
  making market is accessible to anyone who has a
  computer...

40
E-Commerce Marketing

• A lot of companies just use e-commerce as a new
  distribution channel. Theseshould have new
  marketing strategies for these e-commerce
  activities

41
E-Commerce Marketing

• vast opportunities with the web for companies
  to grow, network, amass many customers, and gain
  sales market share rapidly...

42
The Big Concepts

• Information
• Amplification
• Asynchronicity

43
E-Commerce Marketing

• includes all aspects, or any grouping of
  aspects of the purchasing decision that are
  available on-line. Whether it is researching or
  pricing a product...It includes customers
  reactions to the sitea flat, visual interface.

44
The Big Concepts

• Information
• Amplification
• Asynchronicity

45
E-Commerce Marketing

• a strong e-plan can serve as a differentiator
  for most businesses. ...enjoy the interactive
  aesthetically pleasing sites that provide a good
  experience

46
E-Commerce Marketing

• is a vehicle which connects markets
  worldwideenormous potential, but in a
  development stage. It makes so much accessible to
  so many people

47
Blown To Bits

• Reach
• Richness

48
Marketing Experience
Pre-Purchase
Post-Purchase
Purchase
49
eBay

• Howd it start?
• What is eBay?
• Important ComponentsMissionTarget
  MarketInformationFeedbackCommunityInventory
• Demo

50
eBay Mission and Market

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

51
Follow-On Innovations

• www.hammertap.com
• Note We did not get to go to this site, account
  time

Site Visit
52
PayPal

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

53
Weekly Analysis Paper 1

• Subject PayPal
• CriteriaBusiness ModelTechnologyMissionTarget
  Market
• Length 1.5 Pages
• Cover sheet

54
For January 23

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

55
End Here