Head of Product Management, InMobi speaks at Product Professionals Event Hosted by Adaptive Marketing in Bangalore, India. Product Management and how to monetize and price?

1. Monetization Models
A Case Study based discussion
Chandra V, Head of Products, InMobi
Chandra.vattikuti@yahoo.com

2. Topics of Discussion
• Pricing Design & Pricing Approaches
• Marketplaces
– One-sided, Two-sided and Multi-sided marketplaces
• Two-sided marketplaces
• Discussions around
– Naukri
– Google
– Drop Box/Evernote
– LinkedIn
– Mobile
• Monetization in two-sided marketplaces
– Ad Supported
– Direct sell ( Digital Goods or assets )
– Subscription
– Freemium
– Marketplace
– Marketplace of marketplaces
– Sponsorhips

3. Pricing Design Pricing
Driver Types Stages Formula Mix
Penetration, Ski
Profitability Competition Tier MSRP
mming
Diversification, C Sell Through
Mkt Share (Units) Cost Usage
aptive Payment Terms
Bundling, Accler
Revenue (Sales) Value Loyalty
ators
Signal (Mktg) Special Offers

4. Pricing Approaches
Cost-based Pricing
Actual Cost Add: Price to Add: Price to
Target Markup Customers
of Product return Channel of Channel
Competition-based Pricing
Competitive Perceived Price to
differentiation of
Pricing company’s offering Customers
Value-based Pricing
Customer’s Price to Channel/ Target
Customers Perceived company Cost Product
Value Customers markups

5. Cost Per Revenue Dollar (CPRD)

6. Marketplaces
• Marketplace - “the world of commercial activity where goods and services are
bought and sold.”
Head Bride
Buyer Lessee
Hunters Seeker
Shaadi
ebay Craigslist LinkedIn dot
com
Passive Groom
Seller Lessor Job seeker
Seeker

7. What marketplace is this ?
Us Merchant Bank CCA

8. Value Propositions

9. Value Proposition
Different Kinds of value provided by Firms/Individuals/Technologies, to their
Customers
• Newness
• Performance
• Customization
• “Getting the job done”
• Design
• Brand/Status
• Price
• Cost reduction
• Risk reduction
• Accessibility
• Convenience/usability

10. Applying this lens to everything around us ?
Us Merchant Bank CCA

11. Naukri – Marketplace of Jobs seekers/providers
Finding a Job
..
Professional
Development
User
Intent

12. Naukri – Marketplace of Jobs seekers/providers
Job Seeker Marketplace
Billboards Employers Job Seeker

13. Naukri – Marketplace of Jobs seekers/providers

14. Monetization models seen on Naukri
• Ad Supported
• Subscription Sells
– Database sells to Recruiters & Consultants
• Services revenue

15. Google – Marketplace of Information seekers and marketers
Marketplace End user of Google Search
Marketers
Publisher

16. Monetization models seen on Google O&O Inventory
• Ad Supported

17. Ad Networks
• Ad Networks bring together Publishers and Advertisers (who would
otherwise, not be able to discover and work with each other).
User

18. Ad Sense

19. Going off on a tangent ..

20. Freemium
Free + Premium

21. Freemium
Free + Premium

22. Subscription

23. Direct Sells (Apps)

24. Virtual Goods

25. Sponsorships

26. Subsidized, two sided marketplaces
Users

27. Infrastructure Monetization (IaaS, PaaS, SaaS)

28. Summary
• Monetization in marketplaces
– Ad Supported
– Direct sell ( Digital Goods or assets )
– Subscription
– Freemium
– Marketplace
– Marketplace of marketplaces
– Sponsorships
– Subsidized pricing

29. Q&A
Thank you

30. Appendix

31. Strategic Pricing Process
Customers Values Prices Costs Products
Typical customer-led pricing design
Strategic Pricing Phases
Value Price Price & Pricing Price
Creation Structure Value Policy Level
CPV, Econo Metrics, Fe Comn.
mic Value nces Price
ROI Negotiation,
setting
Tools, colla Discounting
31 teral

32. Pricing is a function of Communicating Value
32