a presentation about eBay from the Book : Principles of Marketing ( 2005), Kotler P., Wong V., Saunders J., Armstrong G., 4th European Edition. This presentation answers the questions that this book gives and also gives a case overview before answering.
2. • Pierre Omidyar 1995
• pez dispenser collectors
•A connecting network of buyers and
sellers (community)
• Bill Cobb “ The first worldwide
economic democracy”
3. • No Stores , Warehouses or
Inventory (Click only market)
• Dotcoms sprouted in the late 90s’
• In 2001 eBay had a net profit of $138
million
4. Converting text,
data and sounds to
bit streams. All
computers,
appliances and
automobiles uses
bits of digital
information
The Digital
Age
Digitalization and
connectivity
The explosion of
the Internet
New types of
Intermediaries
Customization
and
Customerization
New economy
that revolves
around
information
business.
Today is the golden
era of technology.
Every individual
has access to
internet and be
both the creator
and the consumer
of the context.
Most
companies
change to click-
and-mortar and
sell direct their
items. This
reduces time.
1.What are the forces shaping the development of Internet
businesses like eBay in the US ? How are these forces
similar or different in the EU and other countries like
Japan/China?
5. 2.‘Customization’-
‘Customerization’ – eBay’s
Marketing strategy
• Customization – involves taking the initiative to
customize the market offering.
• Customerization – the company leaves it to
individual customers to design the offering
(consumers prosumers).
6. ‘Customization’- ‘Customerization’
– eBay’s Marketing strategy
• eBay delivers one of the world's largest online
marketplaces to customers via any connected
device, connecting people with the things they
need and love.
• Anyone can buy and sell practically anything.
• More than 700 million items are listed on eBay.
7. 3. How does eBay create value for
the members of its community?
• Members or Users (Never called
Customers)
• They feel like winners whenever they
success a virtual auction.
• Policy- members provide feedback points
to each other ( positive, neutral, negative)
so to police themselves.
• Provides its members/users a money
back guarantee as they can use their
credit card via PayPal.
8. 4.What marketing recommendations would you make to
eBay to help it be successful as it enters Chinese
market?
• China
I. Population – 1 billion people
II. 27 million Internet users
III. 32 % purchase online
IV. 30 % rarely visit an e-commerce site
9. What marketing recommendations would you make
to eBay to help it be successful as it enters Chinese
market?
• Recommendations
I. Place some ads and promotions online at
Chinese most visited social websites.
II. Place some advertisements at most
populous Chinese market places.
III. Make shipping more easy and reliable.
10. References
Kotler, P. et al. (2005) Principles of Marketing
4th European Ed. London: Pearson Education
Customization = Modyfing something ( product/service) according to a customer's individual requirements
Customerization= refers to a combination of operationally driven mass customerization with customized marketing in a way that empowers consumers to design the product and service offering of their choice.