eBay's Strategy


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eBay's Strategy

  1. 1. Interactive Communications Links to Direct Marketing and Future of E-commerce Main Source (if not stated otherwise): Chaffey et al. 2003 Prentice Hall
  2. 2. Digital Tools for E-Communication Diagram adapted from Bishop (1998) WAP /GPRS / 3G / In-Car Communication Palm Pilot (hand help PC or Communicator) / Laptop Interactive / Digital TV Virtual reality on PC Video mail / Video Communication Real audio Other multi-media on PC Fewer People Personal Computer Net Access E-mail Fax Most People Mobile Telephone (GSM) Voice mail on mobile / Text Messaging Cards with bar code (eg entry cards etc.) Smart cards (e.g., credit cards, phone cards) Everyone Digital Tools For E-Communication People With Access
  3. 3. From One-to Many to One to Some & One-To-One ” Consumers can interact with the medium, firms can provide content to the medium, and in the most radical departure from traditional marketing environments, consumers can provide commercially oriented content to the medium” - Hoffman & Novak (1997) .
  4. 4. From One-to Many to One to Some & One-To-One
  5. 5. From One-to Many to One to Some & One-To-One ” This potential has not yet been fully developed since many companies are still using the internet to provide standardized information to a general audience. However, some companies provide personalised Internet-based services to key accounts” An example is Dell…..with its premier pages. Furthermore some companies such as eBay…or Ubid…..are adopting the new paradigm by offering bespoke auction facilities” - Chaffey et al. 2003, pg 313.
  6. 6. From One-to Many to One to Some & One-To-One Consumers can also take part in Product Design Specification and Feedback on existing products - Hoffman & Novak (1997) .
  7. 7. From One-to Many to Many to Many Communications
  8. 8. Adapted from original presentation by: Cyril Piermé Francisco Jeronimo Leonard Njoroge Maria Spartali (University of Vaasa)
  9. 9. COMPANY OVERVIEW eBay (NASDAQ: EBAY; http://www.ebay.com) is the world's largest online marketplace. Founded in September 1995, eBay is the leading online marketplace for the sale of goods and services by a diverse community of individuals and businesses. Today, the eBay community includes 42.4 million registered users, and is the most popular shopping site on the Internet when measured by total user minutes according to Media Metrix. OUR MISSION eBay's mission is to help practically anyone trade practically anything on earth. OUR MARKETPLACE On any given day, there are more than 12 million items listed on eBay across 18,000 categories. In a year, eBay members transact $14.87 billion in annualized gross merchandise sales (GMS, the value of goods sold on eBay). People come to the eBay marketplace to buy and sell items across multiple categories, including antiques and art, books, business & industrial, cars & other vehicles, clothing & accessories, coins, collectibles, crafts, dolls & bears, electronics & computers, home furnishings, jewelry & watches, movies & DVDs, music, musical instruments, pottery & glass, real estate, sporting goods & memorabilia, stamps, tickets, toys & hobbies and travel. Members from all over the world buy and sell on eBay. Currently, eBay has local sites that serve Australia, Austria, Belgium, Canada, France, Germany, Ireland, Italy, Korea, the Netherlands, New Zealand, Singapore, Spain, Sweden, Switzerland, Taiwan and the United Kingdom. In addition, eBay has a presence in Latin America and China through its investments in MercadoLibre.com and EachNet, respectively. eBay offers a wide variety of features and services that enable members to buy and sell on the site quickly and conveniently. Buyers have the option to purchase items in auction-style format or items can be purchased at fixed price through a feature called Buy-It-Now. In addition, items at fixed price are also available Half.com, an eBay company. eBay is dedicated to its community of members, and has numerous services which enhance the trading experience. Our marketplace services include: online payments by PayPal ; wide array of Buyer and Seller tools ; and Preferred Solution Provider programs .
  10. 10. Company Overview What is eBay? ” We help people trade practically anything on earth”
  11. 11. Products,Services Company Overview International Special Sites Other Contents
  12. 12. E-Com Model 1 st Step : Registration 2 nd Step : Interaction 3 rd Step : Transaction Seller Buyer Registers Bids on item Checks Feedback Wins Auction Registers Chooses Item Lists Item Checks Feedback Exchange E-mails ebay notifies Buyer & Seller Exchange Item for payment Leave feedback for each other Pays ebay
  13. 13. Major services and features available on eBay include: Billpoint Billpoint is eBay's preferred online bill payment service that facilitates credit card payment between buyers and sellers. With Wells Fargo Bank, Billpoint offers expedient and secure completion of each transaction. By giving sellers the convenience of credit card acceptance, and providing buyers the ease to pay more quickly than writing a check or filling out a money order, Billpoint is the best choice for a hassle-free and reliable online payment solution on eBay. Half.com The eBay community benefits from a marketplace combining traditional auction-style trading and Half.com's fixed-price trading. Half.com offers an organized online marketplace to buy and sell high quality, previously owned mass-market goods. Unlike auctions, where the selling price is based on bidding, the seller sets a fixed price for items at Half.com at the time an item is listed. eBay International Users on eBay represent countries all over the world. With eBay's vision and global business strategy, the company continues to expand its service and brand abroad. It is not uncommon to hear about eBay users in Japan buying items from users in the U.S., or users in Australia buying from others in France. Currently, eBay has country specific sites in Austria, Australia, Canada, France, Germany, Ireland, Italy, Japan, Korea, New Zealand, Switzerland and the UK. eBay Motors eBay Motors is the Internet's largest auction-style marketplace for buying and selling all things automotive. At any given time, eBay Motors has a wide variety of vehicles listed for sale, from Acuras to Volvos and all makes and models in-between. The site also features collector cars, motorcycles, as well as auto parts. eBay Motors provides end-to-end online services such as financing, inspections, escrow, auto insurance, vehicle shipping, title & registration, and a lemon check.
  14. 14. eBay Stores eBay Stores expands the marketplace for sellers by allowing them to create customized shopping destinations to merchandise their items on eBay. For buyers, eBay Stores represents a convenient way to access sellers' goods and services. Buyers who shop at eBay Stores are able to make immediate and multiple-item purchases for fixed-price and auction-style items. eBay Professional Services Professional Services on eBay serves the fast growing and fragmented small business marketplace by providing a destination on eBay to find professionals and freelancers for all kinds of business needs such as web design, accounting, writing, technical support, among others. eBay Premier eBay Premier is a specialty site on eBay, which showcases fine art, antiques, fine wines and rare collectibles from leading auction houses and dealers from around the world. Through its "Premier Guarantee" program, all sellers on eBay Premier stand behind and guarantee the authenticity of their items. eBay Live Auctions Live Auctions provides live, real-time online bidding on items being sold on the sales floor of the world's leading auction houses. A proprietary technology developed by eBay, Live Auctions empowers traditional auctioneers to extend their sales beyond the auction house floor and reach millions of potential buyers online. Buyers gain easy access to exclusive, high-end property with the convenience and comfort of bidding from their home or office.
  15. 15. Strategy Short Term Long Term Related Diversification Services Development New Markets Development Consolidation Current Services New Current Markets Strategic Directions
  16. 16. Mobile Model <ul><li>M-Commerce: Transfer of Technology </li></ul><ul><li>Players: </li></ul><ul><li>eBay Anywhere </li></ul><ul><li>Strategic Partners: </li></ul><ul><li>Mobile Competitors: Yahoo!Mobile & Amazon Anywhere </li></ul><ul><li>Is M-Com Model Feasible? Yes </li></ul>
  17. 17. Competitor Analysis
  18. 18. SWOT Analysis Oportunities - Mobile Commerce (LT) - Internet Usage (ST) Threats - New Regulations (ST) - Fraudulent Activities (LT) Strengths - Brand Recognition - Community Affinity Weaknesses - Own growth - System failures Oportunities Weaknesses Threads Strengths Risks (A) Risks (B) Sug (C) Sug (D) ST LT ST LT
  19. 19. Results Overview
  20. 20. Results Overview
  21. 21. Results Overview eBay Vs Freemarkets
  22. 22. Results Overview eBay Vs Nokia
  23. 23. Clicking one… Clicking two… Clicking three… Sold! Thank you !
  24. 24. From ‘Lean-Back’ to ‘Lean Forward’ ” New media………are lean-forward media in which the web site usually has the visitor’s undivided attention. This intensity means that the customer wants to be in control and wants to experience flow and responsiveness to their needs” - Chaffey et al. 2003, pg 314.
  25. 25. Objectives for Interactive Marketing Communications <ul><li>Contact – promoting corporate image, publishing corporate information and offering contact information. Content </li></ul><ul><li>Interact – embed information exchange. Communication </li></ul><ul><li>Transact – online transactions and interaction with trading partners. Commerce </li></ul><ul><li>Relate – two-way customer relationship. Community </li></ul>According to Rowley (2001):
  26. 26. Objectives for Interactive Marketing Communications O’Connor et. Al. (2004): Targetted Mass Field Sales Telephone Direct Mail Local Marketing Newspapers TV / Radio Internet
  27. 27. Tools For Promoting Online Presence
  28. 28. Internet Advertizing Practice
  29. 29. Purpose of Banner Advertizing Work
  30. 30. Requirements for Banner Advertising <ul><li>According to O’connor et. Al. 2004: </li></ul><ul><li>Creativity </li></ul><ul><li>Recognizing internet traffic concentrates around small number of destination sites: </li></ul><ul><li>- High-content sites </li></ul><ul><li>- Search Engines </li></ul><ul><li>- Portals that internet users use as their starting point </li></ul>
  31. 31. Requirements for Banner Advertising Source: Target Online (2001), In O’Connor et. al. (2004)
  32. 32. Making Banner Advertizing Work
  33. 33. Tools For Promoting Online Presence &SMS
  34. 34. Email Marketing Source: Target Online (2001), In O’Connor et. al. (2004)
  35. 35. Email Marketing <ul><li>According to O’connor et. al. 2004: </li></ul><ul><li>76% think direct mail is unethical </li></ul><ul><li>71% think sale of lists between companies is unethical </li></ul><ul><li>67% do not think direct communications provide information </li></ul><ul><li>47% consider direct marketing to be an invasion of privacy </li></ul><ul><li>But you use it, right? </li></ul>
  36. 36. Email Marketing Eg. constantcontact.com
  37. 37. Internet for PR <ul><li>Investor Relations </li></ul><ul><li>Product & Service Information </li></ul><ul><li>Press Releases </li></ul><ul><li>Recruitment </li></ul><ul><li>O’Connor et.al. 2004 </li></ul>
  38. 38. Other Useful Web Sites bcentral.com