2001 online revenue by North American retailers = $51.3 billion
2001 = 21 % over 2000
2002 = 43 % over 2001
2001 Online sales = 2.4 % Of Total
2002 Online Sales = 3.2 %
A Step Toward E-Commerce?
A Trend? 802.11b Library N COBA
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
Why Is E-Commerce Important?
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
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.
RAF vs. FRA
Ready, Aim, Fire!
Fire, Ready, Aim
The C2C Example
“Help anyone trade practically anything on earth.”
How do they do this?
2. Customer Orientation
3. Information Usage
Demo of ebay.com
Table 1–1: Four Categories of E-Commerce
Business originating from . . .
And selling to . . .
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
Exhibit 1 –6 : A Flow Diagram of the Strategic Responsibilities Set Vision Establish Goals Formulate Strategy Drive Implementation Be Accountable for Performance
What you give and what you get
Value and Revenues
A philosophy incorporating the marketing concept that emphasizes first identifying unmet needs, then satisfying them.