A Review of the Seven Major Sales and Distribution Channels that exist on the Web.

1. Internet Sales Trends Understanding the Major On-line Sales and Distribution Systems on the Web

2. Goals of Today Outline the various Internet Sales Channels Current State of Web Business potential of each Examples of missed opportunities Discuss Customer Buying Trends Consumer Business Government / Education Recommend Specific Actions Short term Long term

3. About Yeoman Multi-Channel Distribution Approach Focus on entire web Segment into ‘channels’ Match customer buying patterns Internet focus is on Sales, not Marketing Rely on usage statistics to support any assumptions

4. What’s an Internet Sales Channel? Anywhere from 10 – 30% of a manufacturers sales comes from one of these channels

5. 2009 Internet Revenue by Distribution Point Source: 2009Aggregation of IDC/Gartner stats for worldwide sales via different channels

6. The Big Myth Each are distinct channels with their own group of competitors, systems, and links

7. What Channels Matter? Base on customer pattern Presence – Are they active users Propensity – Are they likely to buy while there Purchase – Are they buying This is a separate criterion from what you would use when looking at general marketing, branding, or customer support.

8. Traditional Sales & Distribution Model

9. Internet Delivery not consistent

10. Internet Sales Challenge Each Channel has multiple vendors None of the systems are interconnected Existence in one may HINDER client ability to find you in another Can require significant investment Must be aware of traditional channel conflict Not the core focus of any one group within a Company Often get lumped in with IT, Marketing, Finance, or Support depending on system

11. Direct Channel Easily understood 10-30% of buyers look to Company site first Most common source of channel conflict Often have to compete with Corporate & Marketing teams Who owns the site? Major focus on “SEO”

12. Auction Systems $100 billion market EBay most commonly known Heavy system use by consumers and heavy equipment mfg Need to have presence to protect brand

13. Supply Chain / B2B The Quiet Giant (<$200b) Major vehicle for many organizations Fast growth in Gov/Ed space No interconnectivity or links to general search Business is there, you may just not know about it!

14. Major E-Tailers $180 billion last year Top 500 dominate market Controls a whopping 30% of user traffic Most have virtual inventories and direct feeds Major mistake to believe its consumer only

15. Referral Systems Account for 13% of all major E-tailer traffic 10% Growth in 2009 Requires feeds into core systems Referral fees 1-6% Will take feeds which help search engine ranking

16. Knowledge Systems Very common on web Focuses on specific topic Controlled discussions Higher end information Separate from ‘selling’ site DIFFERENT from social sites You control content No peer control Brand is managed

17. Social Networking Major focus for marketing Are customers buying? Need to stop wasting resources Aggregate postings Study traffic Determine if sales oppty exists or is it just branding

18. Take Away Points Key Items to remember: Web serves multiple elements within a business Marketing Sales Support Development Align the web responsibility and functions with the Lines of Business Need to look at entire Internet infrastructure at a holistic level

19. www.yeomantechnologies.com mhealey@yeomantechnologies.com 800-667-6098 Questions?