Market Opportunities
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Market Opportunities Presentation Transcript

  • 1. MAR 4333-521 E-Commerce Marketing Fall 2002— Sarasota Market Opportunities Rich Gonzalez September 14, 2002 (Week 3 Saturday)
  • 2. URLs
    • www.britannica.com/
    • coba.usf.edu
    • www.acomp.usf.edu/wireless.html
    • ebay.com
    • www. paypal .com
    • www.carpoint.com
  • 3. Textbooks
    • REQUIRED TEXT
    •   E-Commerce Marketing
    • introduction to e-commerce , Rayport & Jaworski, McGraw Hill/Irwin (2002). ISBN- 0072510242
    •  
    •  
  • 4. Agenda September 14, 2002
    • ebay.com Demo
    • Market Opportunity
    • Site/Model Evaluation--Peruse
    • Due For September 21
  • 5. For Today September 14
    • Chapter 1
    • Chaper 2 Skim only
    • Chapter 3
  • 6. For September 21
    • Chapter 4—Framing 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
  • 7. A Step Toward E-Commerce?
  • 8. Bandwith: Consumer 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
  • 9. Online Retailing Fact
    • 65% of (virtual) shopping carts are abandoned before checkout
    • Why?
  • 10. E-Commerce Is Important
  • 11. Business is going to change more in the next 10 years than it has in the past 50. William H. Gates III, 2000
  • 12. Marketing Concept
    • Target Market
    •   Customer Needs & Wants
    •   Coordinated activities
    •   Profitability
  • 13. Search Engines
    • March 2002—Jupiter Media Metrix
    • 114 Million Internet Users At Home Or Work
    • 80% Made a Search
    • www.searchenginewatch.com/reports/mediametrix.html
  • 14. State of Online Retailing 5.0 Report by BCG
  • 15. 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
  • 16. Online Sales
    • 2001 Online sales = 2.4 % Of Total
    • 2002 Online Sales = 3.2 %
  • 17. A Step Toward E-Commerce?
  • 18. A Trend? 802.11b Library N COBA
  • 19. Wi-Fi
    • Hot Spots—Offices, 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
  • 20. Why Is E-Commerce Important?
  • 21. 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
  • 22. 3 Fundamental Business Shifts
    • 1. Most transactions—B2C, 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.
  • 23. RAF vs. FRA
    • Ready, Aim, Fire!
    • Fire, Ready, Aim
  • 24. The C2C Example
    • Pierre Omidyar
    • Pez Dispensers
    • New Marketspace
  • 25. ebay.com Mission:
    • “Help anyone trade practically anything on earth.”
  • 26. ebay.com
    • How do they do this?
    • 1. Technology
    • 2. Customer Orientation
    • 3. Information Usage
    • 4. Value
    • 5. Community
    • 6. Fun
  • 27. Demo of ebay.com
  • 28. Table 1–1: Four Categories of E-Commerce
    • B2B
    • C2B
    • B2C
    • C2C
    • Business
    • Consumers
    • Business originating from . . .
    • Business
    • Consumers
    • And selling to . . .
  • 29. Framework for MO: Microsoft CarPoint Example Leverage the Internet to Improve the Consumer Car-Buying Process Car Buyers Are Dissatisfied With Current Retail Car Buying Process Shoppers Who Feel Intimidated by Sales People and Look for More Efficient Way Microsoft’s Software and Free Placement on All Its Websites How Big Is the Online Car-Buying Market? Who Are CarPoint’s Main Competitors? Make Go / No-Go Assessment
    • MSN CarPoint identified an opportunity to leverage the Internet to deliver customer value in the car industry
    • 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
    • MSN CarPoint selected two primary target segments for its service:
      • “ The intimidated by the process”
      • “ The information seekers”
    • MSN CarPoint could leverage Microsoft’s 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
    • In 1996 the first version of CarPoint was shipped
    • By 1998, CarPoint was driving $5 million in car sales a day
  • 30. Exhibit 1 –6 : A Flow Diagram of the Strategic Responsibilities Set Vision Establish Goals Formulate Strategy Drive Implementation Be Accountable for Performance
  • 31. Business Model
    • Value Proposition
    • What you give and what you get
    • Value and Revenues
  • 32. Customer Orientation
    • A philosophy incorporating the marketing concept that emphasizes first identifying unmet needs, then satisfying them.
    • Marketing Mantra:
    • #3 --Know your customer(s) .
  • 33. Customer Orientation
    • Metrics: Customer Acquisition Market Share Customer Satisfaction Customer Profitability
  • 34. Customer Satisfaction
    • Definition?
    • Performance – Expectations = CS
  • 35. 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. <beep>
    • 40 minutes later, call back
    • No change in product
    • No we cannot check
  • 36. 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
  • 37. Customer Decision Process
    • Origination (Recognize Problem)
    • Information Gathering
    • Evaluation
    • Purchase Decision
    • Postpurchase Results
  • 38. 1 to 1 Marketing
    • Personalization
    • Customization
  • 39. PayPal
    • What is it?
    • Why is it important?
    • Who are the customers?
    • What are the effects?
  • 40. Analysis Paper # 1
    • Subject: PayPal
    • Criteria: (use bolded headings) Business Model Technology Mission Target Market Customer Benefits
    • Length: 1.5 Pages -------125 points
    • Due on Sep. 21 ------Hard Date
  • 41. End Here