The document discusses considerations for developing online business models. It outlines 6 steps to frame the market: 1) investigate opportunities by identifying unmet needs and where value can be added, 2) identify underserved markets, 3) determine target customer segments, 4) assess resource requirements, 5) evaluate the attractiveness of the opportunity, and 6) make a "go/no-go" decision. Each step provides guidance, such as mapping the customer decision process to reveal opportunities, defining target segments based on behaviors and benefits sought, and assessing competitive landscape and technology vulnerability. The goal is to develop a model that efficiently meets customer needs.
1.
•
•
• An e-commerce business model aims to use and leverage the unique
qualities of the Internet, the Web, and the mobile platform.
• There are eight key elements of a business model.
Value proposition
Defines how a company’s product or service fulfills the needs of customers.
Questions to ask:
• Why should the customer buy from you?
• What will your firm provide that others do not or cannot?
Successful e-commerce value propositions:
• Personalization/customization
•
Reduction of product search, price discovery costs
• Facilitation of transactions by managing product delivery
2. Revenue model
• Describes how the firm will earn revenue, generate profits, and produce a superior return
on invested capital.
Most companies rely on one, or some combination, of the following major revenue models:
• Advertising (Yahoo)
• Subscription (WSJ)
• Transaction fee (eBay)
• S ales (Amazon)
• Affiliate (MyPoints)
Why may a company want more than one revenue model?
3. Market opportunity
• • Refers to the company’s intended marketspace and the overall potential financial
opportunities available to the firm in that marketspace.
Marketspace
• Area of actual or potential commercial value in which company intends to
operate.
Realistic market opportunity:
•
Defined by revenue potential in each market niche in which company hopes
to compete.
Market opportunity typically divided into smaller niches
4. Competitive environment
• Refers to the other companies operating in the same marketspace selling
similar products.
Who else occupies your intended marketspace?”
• Other companies selling similar products in the same marketspace.
• Includes both direct and indirect competitors.
Influenced by:
• Number and size of active competitors
• Each competitor’s market share
• Competitors’ profitability
•
•
•
•
5. Competitive advantage
• Competitive advantage:
• Achieved by a firm when it can produce a superior product and/or
bring the product to market at a lower price than most, or all, of its
competitors.
“What special advantages does your firm bring to the marketspace?”
• Is your product superior to or cheaper to produce than your
competitors’?
6. Market strategy
• • The plan you put together that details exactly how you intend to enter a
new market and attract new customers.
Details how a company intends to enter market and attract customers Best
business concepts will fail if not properly marketed to potential customers.
Examples:
• YouTube having social network marketing strategy which lets users to
post content on the site for free;
• AOL distributing out free trial CDs through magazines and newspapers
7. Organizational development
• Development plan describes how the company will organize the work that
needs to be accomplished.
Work typically divided into functional departments, e.g, production,
shipping, marketing
In the fall of 2006, I did a marketing communications observation on Best Buy for a Marketing Communications course. The observation project was basically a small-scale audit for which I collected as many examples of marketing communications as I could find. These included commercials, print ads, website screenshots, photos of store interiors, and more. I analyzed other customer touch-points for the brand, such as in-store salespeople, telephone customer service, and the store environment. I also touched on consumer brand image perceptions gathered through personal conversations, blog posts and other websites. Finallly, I drew conclusions about the role of Best Buy’s communications in their customer relationships and in the customer experience.
Business to consumer (B2C) refers to the transactions conducted directly between a company and consumers who are the end-users of its products or services. The business to consumer as a business model differs significantly from the business-to-business model, which refers to commerce between two or more businesses
What Is Multi Channel Retail?: Benefits, Challenges and ImpactsRizwan Tayabali
Multi-channel retailing is a deceptively easy concept. Simple in terminology, but complex to
explain and even more so to deliver. This paper provides an overview of what it is about, covering the
drivers, benefits, challenges and organizational changes needed to get there.
Best Buy careers in Finance, Accounting, or Taxikahn
This presentation highlights Best Buy's Finance organization which includes accounting and tax specialties. This is the "why you'd want to work at Best Buy corporate" presentation. Covers Best Buy company performance details, and campus amenities. Describes the structure of Best Buy's finance organization
Our strategic management team conducted a thorough external and internal analysis, considering quantitative data from Best Buy on viability of future strategy and recommendations they should consider.
1.
•
•
• An e-commerce business model aims to use and leverage the unique
qualities of the Internet, the Web, and the mobile platform.
• There are eight key elements of a business model.
Value proposition
Defines how a company’s product or service fulfills the needs of customers.
Questions to ask:
• Why should the customer buy from you?
• What will your firm provide that others do not or cannot?
Successful e-commerce value propositions:
• Personalization/customization
•
Reduction of product search, price discovery costs
• Facilitation of transactions by managing product delivery
2. Revenue model
• Describes how the firm will earn revenue, generate profits, and produce a superior return
on invested capital.
Most companies rely on one, or some combination, of the following major revenue models:
• Advertising (Yahoo)
• Subscription (WSJ)
• Transaction fee (eBay)
• S ales (Amazon)
• Affiliate (MyPoints)
Why may a company want more than one revenue model?
3. Market opportunity
• • Refers to the company’s intended marketspace and the overall potential financial
opportunities available to the firm in that marketspace.
Marketspace
• Area of actual or potential commercial value in which company intends to
operate.
Realistic market opportunity:
•
Defined by revenue potential in each market niche in which company hopes
to compete.
Market opportunity typically divided into smaller niches
4. Competitive environment
• Refers to the other companies operating in the same marketspace selling
similar products.
Who else occupies your intended marketspace?”
• Other companies selling similar products in the same marketspace.
• Includes both direct and indirect competitors.
Influenced by:
• Number and size of active competitors
• Each competitor’s market share
• Competitors’ profitability
•
•
•
•
5. Competitive advantage
• Competitive advantage:
• Achieved by a firm when it can produce a superior product and/or
bring the product to market at a lower price than most, or all, of its
competitors.
“What special advantages does your firm bring to the marketspace?”
• Is your product superior to or cheaper to produce than your
competitors’?
6. Market strategy
• • The plan you put together that details exactly how you intend to enter a
new market and attract new customers.
Details how a company intends to enter market and attract customers Best
business concepts will fail if not properly marketed to potential customers.
Examples:
• YouTube having social network marketing strategy which lets users to
post content on the site for free;
• AOL distributing out free trial CDs through magazines and newspapers
7. Organizational development
• Development plan describes how the company will organize the work that
needs to be accomplished.
Work typically divided into functional departments, e.g, production,
shipping, marketing
In the fall of 2006, I did a marketing communications observation on Best Buy for a Marketing Communications course. The observation project was basically a small-scale audit for which I collected as many examples of marketing communications as I could find. These included commercials, print ads, website screenshots, photos of store interiors, and more. I analyzed other customer touch-points for the brand, such as in-store salespeople, telephone customer service, and the store environment. I also touched on consumer brand image perceptions gathered through personal conversations, blog posts and other websites. Finallly, I drew conclusions about the role of Best Buy’s communications in their customer relationships and in the customer experience.
Business to consumer (B2C) refers to the transactions conducted directly between a company and consumers who are the end-users of its products or services. The business to consumer as a business model differs significantly from the business-to-business model, which refers to commerce between two or more businesses
What Is Multi Channel Retail?: Benefits, Challenges and ImpactsRizwan Tayabali
Multi-channel retailing is a deceptively easy concept. Simple in terminology, but complex to
explain and even more so to deliver. This paper provides an overview of what it is about, covering the
drivers, benefits, challenges and organizational changes needed to get there.
Best Buy careers in Finance, Accounting, or Taxikahn
This presentation highlights Best Buy's Finance organization which includes accounting and tax specialties. This is the "why you'd want to work at Best Buy corporate" presentation. Covers Best Buy company performance details, and campus amenities. Describes the structure of Best Buy's finance organization
Our strategic management team conducted a thorough external and internal analysis, considering quantitative data from Best Buy on viability of future strategy and recommendations they should consider.
Learning about models of E-Business is made easy through this presentation. It contains the comprehensive information about models of E-Business. It helps the students to learn the concepts quickly with the help of examples. The models are presented with crisp explanation.
This is a crash course in new product marketing. In less than 30 slides you'll learn how to develop a new product concept, build a business plan to turn this concept into a reality, as well as how to craft a marketing plan to help you sell this product. You'll find these step-by-step slides easy to understand and, by the end, be in a better position to launch your idea to the world.
Disciplined Entrepreneurship (24 Steps to a Successful Startup) - TUMS Entrepreneurship Olympiad 7th Workshop - 22 Dec 2019
هفتمین کارگاه از مجموعه کارگاههای کارآفرینی در سلامت، برای شرکت کنندگان دانشگاه علوم پزشکی تهران در حیطهی کارآفرینی دوازدهمین دورهی المپیادهای علمی دانشجویان علوم پزشکی کشور دربارهی کارآفرینی اصولی در قالب 24 گام موفقیت کسبوکارهای نوپا در تالار عزلت دانشکدهی پزشکی در روز 1 دیماه 1398 برگزار شد. در این کارگاه مراحل راهاندازی یک کسبوکار از یافتن ایده و اعتبار سنجی و تقسیم بازار تا برخی محاسبات مالی و رشد و مقیاسپذیری مورد بحث قرار گرفته است.
Slides gives basic understanding of e-strategy,e-commerce,e-business. Discuss unique features of e-commerce technology and different types of e-commerce with examples
Topics Covered:
=================================================
Business Plan and Business Model
Ingredients of a Business Model
Major B2C Business Model
Similar to Interactive Marketing Week 2 Ethan Chazin (20)
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An introduction into Integrated Marketing Communications. How IMC serves the advertising function for promoting organizations, their products, and services.
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Cracking the Workplace Discipline Code Main.pptxWorkforce Group
Cultivating and maintaining discipline within teams is a critical differentiator for successful organisations.
Forward-thinking leaders and business managers understand the impact that discipline has on organisational success. A disciplined workforce operates with clarity, focus, and a shared understanding of expectations, ultimately driving better results, optimising productivity, and facilitating seamless collaboration.
Although discipline is not a one-size-fits-all approach, it can help create a work environment that encourages personal growth and accountability rather than solely relying on punitive measures.
In this deck, you will learn the significance of workplace discipline for organisational success. You’ll also learn
• Four (4) workplace discipline methods you should consider
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Implicitly or explicitly all competing businesses employ a strategy to select a mix
of marketing resources. Formulating such competitive strategies fundamentally
involves recognizing relationships between elements of the marketing mix (e.g.,
price and product quality), as well as assessing competitive and market conditions
(i.e., industry structure in the language of economics).
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12. • Web-enabled business models are different
than traditional business models.
• Lack the constraints of physical product
manufacturing or service delivery.
• Advances in technology (Internet browsers,
hand-held devices, electronics, CRM,
telecommunications) force businesses to
develop models/make decisions rapidly.
• TECHNOLOGY IS A DISTRUPTIVE FORCE
• The “networked” Web enables partnerships for
business survival -> co-opetition (Novell
founder Ray Noorda)
Key ConsiderationsKey Considerations
15. • Friend, or foe…or BOTH???
• When competitors partner.
• A business NECESSITY due to converging
technologies (Microsoft, IBM, Netscape, Sony,
Apple, etc. etc. etc.)
Co-opetitionCo-opetition
16. • Consumer behavior is not well established in
the online world YET due to constantly evolving
software and hardware innovations.
• Listen to consumers to define/solve needs:
– (Ex. File sharing services: Napster, Gnutella, KaZaA)
• Industry value chains are constantly being re-
defined due to 24 x 7 x 365 customer feedback.
Key ConsiderationsKey Considerations
18. Investigating opportunities in an existing or
new value system.
Identifying unmet or underserved needs.
Determining target segments.
Assessing resource requirements to deliver the
offering.
Assessing the attractiveness of the
opportunity.
Making an educated “Go/No-Go” decision.
The 6-Step ProcessThe 6-Step Process
20. • The Value chain (playing field) contains all the
key stakeholders.
• Identify where the new company will compete.
• Where are the opportunities to add value:
– Where can you unlock value by creating more
efficient markets (ways of doing things.)
• New to the world value means creating new
benefits:
– Customize offerings: allow your customers to
personalize your products/services or removed
unwanted features (Yahoo! News)
– Build community: chat rooms, closed community
websites (MyFamily.com)
Investigate OpportunitiesInvestigate Opportunities
36. – Introduce new functionality/experience:
communications, computing, and entertainment
keep converging, to continuously offer new customer
experiences.
• Customers in controlCustomers in control: they have more
information than ever, thus greater negotiating
power (MySimon, BizRate)
• Ease of accessEase of access: connecting communication
points between partners.
• Radically extend reachRadically extend reach: extend the
boundaries of a market because people are
working together so efficiently.
Investigate OpportunitiesInvestigate Opportunities
37.
38.
39. • Organizations look for one of 3 things:
– Trapped value to be liberated: create more efficient
markets (BizBuyer.com) or value systems.
– New to the world: value that can be created.
– Hybrid of BOTH: unlocking trapped talent AND
adding new benefits (Amazon)
Investigate OpportunitiesInvestigate Opportunities
43. • Map the customer decision process (Amazon’s
use of personal recommendations.)
– What steps does the customer go through?
– Where does the customer obtain their information?
– Where does the process take place?
• What opportunities exist online for customers to
enhance or entirely transform the customer’s
experience.
Revealing Unmet NeedsRevealing Unmet Needs
52. The theory of The Long TailThe Long Tail ((Chris AndersonChris Anderson)) is that our culture
and economy is increasingly shifting away from a focus on a
relatively small # of “hits” (mainstream products and markets) at
the head of the demand curve, and towards a huge # of niches in
the tail. As the costs of production and distribution fall, esp.
online, there is now less need to lump products and consumers
into one size fits all containers. In an era without the constraints
of physical shelf space and other bottlenecks of distribution,
narrowly targeted goods and services can be as economically
attractive as mainstream fare.
David Meerman Scott. “The New Rules of Marketing & PR.” p. 17.
53. • A book by David Meerman Scott. His rules:
– NOBODY cares about your products except you.
– No coercion is required.
– You should lose control.
– Put down roots.
– Create triggers that encourage people to share.
– Point the world to your (virtual) doorstep.
The “World Wide Rave”The “World Wide Rave”
56. • A marketmarket is the set of all actual and potential
buyers who have sufficient interest in, income for,
and access to your products/services.
• Market segmentationMarket segmentation divides your market into
distinct groups of homogenous consumers who all
have similar needs and consumer behavior, and thus
require similar marketing mixes.
• Segmentation bases for B2C & B2B markets:
– Behavioral
– Demographic
– Psychographic
– Geographic
– Occasion
– Benefits
Target Markets
59. • Activities of the target segment
• Interests…
• Opinions…
• Attitudes…
• Values…
Psychographic Segmentation
60. • Segmentation bases for B2C & B2B markets:
– Nature of good or service
– Buying condition of the consumer
– Demographic details
• DescriptiveDescriptive or consumer-basedconsumer-based are related to
what kind of person or organization the customer
is.
• BehavioralBehavioral or product-orientedproduct-oriented are related to
how the customer thinks of or uses the brand,
product, or service. Behavioral segmentation bases
are often most valuable in understanding branding
issues, because they have clearer strategic
implications.
Target Markets
61.
62. For behavioral or product-
oriented target segments
think “INSURANCEINSURANCE”
71. • Identify who you want to sell your products to
and offer your services to.
• ActionableActionable segmentation:
– The segments are easy to identify.
– Segments can be easily reached.
– Segments can be defined in terms of their growth,
size, profile and attractiveness.
• MeaningfulMeaningful segmentation: explains why
customers act the way they do:
– Customers in a segment behave in similar ways.
– Sheds light into customer motivations.
– Correlates to differences in profitability or cost to
serve
Find Your Target MarketsFind Your Target Markets
72. • Specify the benefits you will deliver to specific
target segments:
– Volvo (safety)
– Nordstrom’s (customer care)
– Southwest Airlines (convenience)
Focus on Customer BenefitsFocus on Customer Benefits
75. • What capabilities do you need, to deliver a new
offering.
• Company defines what experience and benefits
the product will provide.
• Define the the capabilities and technology
required to deliver the benefits of the offering.
• Develop a resource system, the collection of
individual and organizational activities and
assets.
• For online marketing, shift the focus from
activities and capabilities in the “physical” world
to a mix of marketplace and virtual assets.
Assess Required ResourcesAssess Required Resources
77. • What’s the competitive landscape like?
• Customer dynamics: level of unmet need,
interaction between customer segments, and
likely growth rate of target segment.
• Technology vulnerability: how vulnerable is the
new product/service to technology
trends/advancements.
• Microeconomics: the size/volume of the market
and the projected profitability.
Assess the OpportunityAssess the Opportunity