3. EXECUTIVE SUMMARY
3
eBay has been an online marketplace for the sale of goods and services since 1995. Back then, eBay was a
pioneer in a new industry. Now, eBay is part of the rapidly growing e-commerce market as the world is moving
increasingly digital. As the industry has become more saturated, the primary driver behind marketing tactics for
eBay will be developing awareness of eBay’s various services and differentiation amongst competitors such as
Amazon. Therefore, the proposed advertising campaign will focus on the unique services that eBay has to offer
but consumers are generally unaware of such as Buy it Now, Valet, Close5, and the Money Back Guarantee. eBay
will differentiate itself through the utilization of unconventional advertising that specifically appeals to the target
markets, Millennials and Generation Z. Some of these marketing strategies include social media advertisements,
guerilla marketing events, promotional sweepstakes, and a corporate social responsibility initiative. In order to
obtain a greater understanding of consumer trends and preferences within the target market, primary and sec-
ondary research was conducted. With the collected data, analyses were formed to guide the marketing efforts.
Through the implementation of this marketing plan and as consumers lean more towards digital shopping, eBay
will achieve an estimated 4% increase in sales after one year. All in all, eBay has the features and recognition to
remain as a key competitor in the industry; this marketing plan simply recommends strategies to better reso-
nate with the Millennial and Generation Z demographics to secure the company’s longevity and overall growth.
4. COMPANY BACKGROUND
eBay was established in September of 1995 as a marketplace for the sale of goods and services (AMA
Case, 2016). Shaping the way people buy and sell everything, eBay is a part of the growing e-commerce in-
dustry with nearly $295 billion in revenue (IBISWorld, 2016). While the industry is already saturated, mar-
ket growth is predicted to increase as more consumers gain access to the Internet. Within the indus-
try, eBay has an estimated 0.9% market share (IBIS-World, 2016). Notably, eBay is now a multinational
company that sells in over 30 countries and has nearly 58% of total revenue coming from the internation-
al markets. Furthermore, with over $8 billion in revenue in 2015, eBay is one of the most valuable brands
in the world (AMA Case, 2016). The company’s vision for commerce is one that is enabled by people, pow-
ered by technology, and open to everyone. Not to mention, eBay wants to work with sellers rather than com-
peting with them; therefore, emphasis is placed on building connections between buyers and sellers alike.
eBay may have started out as an auction website and the place to get a “good deal,” but now it has evolved
into a top retail brand. Along with the auction option, eBay offers a fixed-price selling option which allows
time-constrained consumers to purchase their desired products without placing a last-minute bid (IBISWorld,
2016). Fixed-price selling has become so popular on the site that fewer than 15% of eBay’s listings are auc-
tion-only sales (IBISWorld, 2016). Moreover, eBay offers both new and used products. Contrary to popular
belief, 80% of items sold on eBay are new. Reinforcing the option to sell new products, the company allows any-
one to set up a digital storefront where they can sell brand-new inventory (AMA Case, 2016). Essentially, eBay
has transformed from the bargain auctioning site into an online marketplace for new products at fixed prices.
COMPETITIVE ANALYSIS
Not surprisingly, the E-Commerce and Online Auctions industry encompasses establishments that
sell online with the Internet as the primary selling platform. The e-commerce industry is growing and
as a result, the number of enterprises, revenue, and competition are anticipated to drastically increase
(IBISWorld, 2016). Because of the growing competition, companies will need to differentiate them-
selves with more targeted promotions and products and take advantage of emerging technologies.
When comparing eBay to Amazon, the biggest player in the e-commerce market, it is apparent that both have
large networks with a wide range of products. In regards to sales options, Amazon only has fixed-price sales
which allows all sales to be instant (traditional retail). On the other hand, eBay has both auction style and sell it
now options so sales are both deferred and instantaneous. With a basic seller’s account, products can be list-
ed on Amazon for free with $0.99 charged per item sold on top of some commission (Broom, n.d.); and then
eBay charges a fee to list and does not garnish sales revenue. Perhaps the biggest difference between eBay
and Amazon as e-commerce platforms are value-added services. eBay puts the responsibility of customer
service on its sellers and generally does not provide extra services to buyers. On the contrary, Amazon Prime
offers many advantages to those that pay for the membership, such as free two-day shipping, great custom-
er service, and the rewards program. For $99 a year, Amazon Prime members are provided with free two-day
shipping, unlimited streaming access to videos, TV shows, and music, and can even borrow books through the
Kindle Owners’ Lending Library (Amazon, n.d.). According to an RBC survey from 2015, 37% of Amazon shop-
pers are Prime members and spend 2.3 times more than non-Prime members per year (Dougherty, 2015). No-
tably, a large portion of Amazon’s customer base falls in the coveted Millennial and Generation Z age range.
Amazon buyers are more likely to make impulse buys and Millennial shoppers specifically are motivated by
self-image and thus, are likely to purchase products that seem interesting, exciting, or fun (Dougherty, 2015).
Another similar competitor to eBay is Alibaba -- both connect buyers and sellers, offer many types of prod-
ucts, and do not hold inventory (unlike Amazon). According to the Wall Street Journal, Alibaba is one of the
most popular locations for online shopping in the fast growing e-commerce market with nearly $250 bil-
lion in sales in 2014 (Lajoie and Shearman, n.d.). In the third quarter of 2015, Alibaba had a market share of
54% in the B2C market in China (Carpenter, 2016). Alibaba’s transactions totaled more than Amazon.com
and eBay combined last year alone. The company has a competitive advantage over eBay because it is a
marketplace, a search engine, and a bank all in one. Taobao, Tmall and Alibaba.com are the three sites that
uniquely serve merchants and businesses. Taobao is a website for consumer-to-consumer trade, Tmall is
for exclusive big brands and is a business-to-consumer platform, and Alibaba.com is the largest and is used
SITUATION ANALYSIS
4
5. for business-to-business trading (Lajoie, n.d.). Overall, Alibaba’s success is attributed to their proper entry and
expansion in China, where they now dominate eighty percent of the massive market (Walter, 2015). Curiously,
one of challenges Alibaba has faced is its ability to go mobile. For eBay to be more attractive to Millennials and
Generation Z and to differentiate itself from Alibaba, the company should focus on excelling in mobile friendliness.
Furthermore, Etsy is another noteworthy competitor of eBay. Etsy is an online, global marketplace where
people can connect through the process of making, selling, and buying unique products. Since its founding
in 2005, Etsy’s business model has been based on shared success where they make money when their sell-
ers make money. This model has provided an attractive outlet for small and large artisans to run their busi-
nesses with a $0.20 listing fee per product and then 3.5% commission per sale (“About Etsy,” n.d.). Additional
revenue comes from seller services including the advertising platforms, payment processing, and discounted
shipping labels (“About Etsy,” n.d.). When compared to eBay, Etsy sells more personalized items, Additional
revenue comes from seller services including the advertising platforms, payment processing, and discount-
ed shipping labels (“About Etsy,” n.d.). When compared to eBay, Etsy sells more personalized items, has more
direct sales, and a smaller target audience. In general, people are less likely to find major brand names (like
they could on eBay), but are able to find more personalized, hand-crafted, and one-of-a-kind items on Etsy.
Craigslist additionally provides a meeting place for both buyers and sellers. Similar to eBay, Craigslist offers
a wide variety of products that often cannot be found in mainstream stores. Craigslist is free to join and has
no membership costs. When purchasing products, there is no shipping cost, however, the buyer may have to
drive to the seller’s home to buy the product (Broom, n.d.). Therefore, it is both cheaper and more efficient to
buy local products, which can limit the amount of items available to shoppers. Not to mention, small and inex-
pensive products may not be worth the drive to purchase which further limits the potential purchases on the
site. When using Craigslist, a buyer and seller usually meet face-to-face which can also be an uneasy process.
Most other e-commerce sites such as eBay, Amazon or Etsy eliminate the need for face to face transactions.
Overstock.com is a website that sells surplus items from all over the world at a lower cost than the suggested
retail price. In comparison to eBay, Overstock has greater commercial advertising, especially through event
sponsorships such as a large mountain climb or bike race. Overstock.com is painless to navigate as a result
of its easy-to-use item categorization. The company also offers 10% off on first-time purchases and indicates
exactly where the purchased item is coming from (Broom, n.d.) which are perks not always offered by eBay.
Founded in Great Britain in 1998, eBid is considered to be one of the top five auction sites in the world. Com-
pared to eBay, eBid is considered to be more seller-friendly with no listing fees and a 3% cap on the auction’s
final value fee (“Fees and Charges,” n.d.); whereas eBay has a 10% cap and a listing fee for all items. Another
advantage of eBid’s is that both buyers and sellers can leave negative reviews about one another -- interest-
ingly, only buyers can leave negative reviews on eBay. While limiting negative reviews to only buyers avoids
things such item swapping and unfair returns, it can have an impact on customer satisfaction and the overall
experience with and impression of the company. Not surprisingly, eBid has a higher overall customer rating.
Furthermore, clothing (especially brand items which eBay often pulls), collectibles, and consumables (such as
art materials, ink cartridges, furnishings, etc.) can sell better and faster on eBid, which may be attributed to
the automatic upload to Google Shopping (“Life Begins at 40,” 2012). While the pricing structure and Google
Shopping advertising are major pluses of eBid, the site does not have enough traffic and also has a many more
sellers than it does buyers. According to some eBid sellers, certain items would sit for up to two weeks on site
and then sell after only several days on eBay (“Life Begins at 40,” 2012). Therefore, eBid has some advantag-
es over eBay, but the disadvantages of low traffic, seller surpluses, and low item turnover make them less of a
threat in the massive e-commerce marketplace. However, eBid’s low cost, inclusive review policies, and val-
ue-added features (such as Google Shopping promotions) should be considered by eBay when moving forward.
CONSUMER ANALYSIS
Making up over 25% of the population, the Millennial Generation born in 1981 to 1997, have an increasingly large
and notabe impact on the success of companies and their products and services (Pew Research Center, 2015).
This generation grew up in the technological age and know how to ensure that their money is being well spent, by
easily navigating and comparing advertisements and brands (Curtin, 2014). They tend to visit online shops re-
gardless of whether or not they have a product in mind because of the power of the advertising that draws them
in. With a specific product in mind, Millennials use their skills to compare the product with others while search-
ing for coupons and specials. By using websites like Amazon or eBay, Millennials are able to easily compare
the product as well as consumer ratings between a variety of brands (“How Millennials Shop,” 2013). Consumer
ratings influence the trust Millennials place in certain products and companies. Curiously, studies have indicat-
ed that Millennials will purchase a product with four stars and over six-hundred ratings over a product with five
stars but only one hundred ratings (Gasca, 2015). This generation is conscientious of spending money which
makes it critical for brands to speak to their value, quality, relevance, and provide an outlet for consumer ratings.
5
6. The Millennial Generation already has high purchasing power at roughly $170 billion per year. More impor-
tantly, nearly half of Millennials’ shopping is done online (Curtin, 2014). Eighty-percent of Millennials have
smart phones which gives them easier access to buying than any other generation and are also their pri-
mary source to find products, deals and shopping news. The cell phone skills Millennials possess have
led them to search for price match tools and loyalty programs. Sixty-eight percent of Millennials said they
would change where they shopped if it meant getting more rewards and one-third reported buying some-
thing they didn’t necessarily want, just to earn rewards (Gasca, 2015). Thus, if Millennials are shopping on
their mobile devices more than in stores, then eBay, already being online, has an advantage but needs to
take initiative to create an app and mobile browser that is not only visually appealing, but also easy to navi-
gate. Also, having a loyalty program that rewards customers for using the app could help appeal to a great-
er audience -- especially considering that Amazon already offers a rewards program to their Prime members.
The 60 million individuals that can be characterized as belonging to Generation Z were born between 1996 and
2011, outnumbering millennials by a million. Generation Z is even more diverse than Millennials making them
the most diverse generation in American history (Segran, 2016). However, they do not spend as much and they
are less brand conscious than Millennials. For them, it is not so much that they are price conscious, but it’s about
what they are getting for the money they are spending -- in other words, value is most important to them. They
also care about engaging with brands that have values that align with their own. Corporate Social Responsibility
initiatives and sustainable practices are becoming increasingly important for companies wishing to cater to this
demographic as they were born into a world of corruption, inequality, recessions, and climate change (Roth, 2015).
Another difference between Millennials and Generation Z is that they are the first generation to exist that does
not know life without the Internet and the search engines, social media sites, and apps that come with it (Segran,
2016). Snapchat, a social media app dominated by the Generation Z demographic, logs more than 10 billion video
views per day, suggesting that Generation Z is watching more video content than ever (through their cellphones
rather than television). Today, technological innovation is more of an expectation than an exciting and celebrated
concept making it even more critical for companies to innovate and adapt (Mastroianni, 2016). Generation Z is
also less trusting of brands because of the corporate corruption they have been exposed to such an the Enron.
disaster, BP oil spill, and the failure of the financial markets in the Great Recession. In addition, information has
always been available to this generation so they are more aware and informed than ever. With that, Generation
Z is also more willing to hear a brand’s story when it is part of a narrative their peer is telling them and they trust
individuals more than big institutions, making word-of-mouth imperative to marketing plans (Segran, 2016).
SWOT ANALYSIS
InternalAnalysis. eBayhas a strong presence inthe e-commerce industry, especiallybecausetheywere one ofthe
firstcompaniestoenterit. eBayshapedthewaypeoplebuyandsellthingsonline,ontopofgainingsignificantbrand
recognitionasaresultoftheirfirstmoveradvantage.Nottomention,eBaywasoneofthefirstcompaniesintheindustry
to enter the international markets. Today, their international reach stretches across 37 countries. Moreover, a
wide variety of products are sold on the e-commerce platform. With few limits placed on the sellers and mon-
ey-back guarantee provided by eBay, commerce through eBay is advantageous for buyers and sellers alike.
The money-back guarantee additionally allows consumers the opportunity to rate and view the buyer’s rep-
utation (which could help them determine if it’s a trusted seller or not). Lastly, eBay’s goal to build connec-
tions between buyers and sellers through technology is embodied in the Connected Commerce™ initiative.
The company aims to foster commerce between all sellers and buyers indicating a core value of inclusivity.
Over the years, the public’s perception of eBay has become rather skewed. Many people believe that eBay
is solely an auction website and is the site their parents use to find knock-off or used items. This negative
positioning has greatly impacted eBay and its sales. Despite feedback ratings and the money-back guar-
antee, many consumers believe the products they buy on auction may be misrepresented or faulty which
could add to post-purchase dissonance. Another drawback that may influence consumers is the bidding as-
pect of certain products. Even if buyers find an item they really like and they have to bid for it, they may not
have the time or desire to participate in the bidding process. While eBay tried to resolve this quandry with
the fixed-price option, the company has failed to properly drill the message into the public with their market-
ing communications and positioning strategies. Finally, the company has no distribution center so the time
it takes to distribute products is unknown and adds to the established uncertainty of shopping on eBay.
External Analysis. Despite the number of competitors and new entrants in the e-commerce industry, there is
still opportunity to grow. An increasing number of consumers are purchasing products online rather than in-
store. Along with the industry expanding, the target demographics, Millennials and Generation Z, are increasing
in size and purchasing power. Essentially, these tech-savvy consumers are here to stay. For eBay, updating
their presence on mobile apps and social media offer great opportunity to appeal to these
6
7. generations. Lastly, free shipping is another appealing option for this demographic who has already been
conditioned to receive free shipping (take Amazon Prime’s free two-day shipping perk for example).
In a growing industry like e-commerce, a company is always going to be subject to threats. Perhaps the biggest
threats to eBay’s include the fast-changing marketplace, the decreasing barriers to entry, and the expanding
competitive landscape. It is safe to say that Amazon is a force to be reckoned with an estimated 19.9% market
share in e-commerce (IBISWorld, 2016). Despite being a popular online retailer for the younger demographics,
Amazon’s biggest weakness is their inventory obligations -- which eBay has an advantage over. However, be-
cause eBay does not hold inventory, they are entirely dependent on their sellers (who cannot be guaranteed to
be reliable). Not to mention, consumers do not know who they are entering into business with and specifically
where their purchased goods are coming from. Moreover, with any online retailer, information security becomes
a huge risk and threatens the integrity, reputation, and ultimately, the survival of a company. In a day in age
where identity theft and credit card fraud are rampant, consumers are understandably con-scientious when
it comes to online purchases and providing their credit card and personal information online. Thus, compla-
cency, the current business model, and competitors are serious factors for eBay to consider moving forward.
SWOT Diagram.
7
STRENGTHS WEAKNESSES
Brand recognition Positioning (perceived as auction-only site)
E-commerce presence Negative word-of-mouth
Product variety Lack of trust for auction products
International reach (37 countries) Bidding Process
Money-back guarntee Distribution ambiguity
Feedback scores Pricing structure/shipping options are not
No inventory competitive
Connected Commerce initiatives
OPPORTUNITIES THREATS
Free shipping Competition/reduced barriers to entry
Rewards program Online security scams/hacks
Refine social media presence Lack of cultural advantage in U.S.
Partnership with universities Dependency on sellers (may be unreliable)
App improvements Complacency in a technological industry
Corporate Social Responsibility initiatives
Advancing international presence
8. After analyzing the notes and video, several insights
were gained. As expected, the first discovery was
that 90% of the subjects stated that they shop on-
line, however, the majority rarely uses eBay. Their lack
of awareness of the benefits within eBay’s website ex-
plain why they regularly choose to buy their products
from the competition. Therefore, if Millennials and
Generation Z are not choosing eBay, who is? Many of
the subjects felt that 30 year-old males would be the
most common eBay shopper. One person even said,
“Who the hell uses eBay anymore except weird 30
year-olds?” The third major takeaway was that about
60% of the subjects stated they had no idea eBay
8
wasmorethananauctionwebsiteandthattheyalsosellnewitems.ThisgroupofsubjectsunawareofwhatelseeBay
has to offer other than auction items shows the need to focus on building awareness on all that eBay has to offer.
When the participants were asked to describe what eBay is in their own words and what words come to
mind when they hear the word eBay, the responses were similar. “Auction,” “used,” “cheap,” “shady people,”
and “where anything can be bought” were the top word choices. As a follow up, participants were asked to
describe what eBay does in their own words, and more commonalities were said. The participants described
eBay as “an online auction site,” “a place where consumers bid against other people to buy a product,” “a place
where consumers can buy specialty items that can’t be found elsewhere,” and “an online site where con-
sumers can also buy or sell items.” From the responses, it is evident there is a lack of awareness regarding
eBay, such as the fact that new products are sold on their website, making it not exclusively an auction site.
Only three of the twenty participants indicated they had used eBay before. The main reasons they chose eBay
over the competition include the availability of unique items not found in retail stores, the cheaper product of-
fering, and the wide selection of products. For those that said they don’t use eBay, the root cause was the
fact that they don’t trust the people that are selling the products. Two people also stated that they or a fam-
ily member had a bad experience using eBay and getting their identity stolen. The participants then point-
ed to the fact that Amazon is more “credible, reputable, and trustworthy.” In addition, those who use Ama-
zon over eBay stated that they liked the prime account and simply have more background knowledge on the
website. Participants even stated that in order for them to buy from eBay instead of Amazon, eBay needs to
give a reason for them not to use Amazon such as a shipping deal or loyalty points. Once again, these re-
sponses indicated most people in the target demographic have little knowledge of what eBay has to offer.
One of the most beneficial questions we asked respondents was to generalize their thoughts of eBay into an
animal and explain why. A majority of the responses and explanations regarded benefits of using eBay. One re-
spondent stated that the website is “always changing” and therefore represents a chameleon. Although a variety
of products is a strength, this respondent was unaware that new items are sold that are not often changing on the
website. For similar reasons, respondents stated the website is like a packrat or raccoon because eBay is where
they can “sell things that are no longer useful to [them] and others will use.” A standout negative response given in
the focus group was that eBay is like a fox, because “it’s sly and consumers don’t know what they’re really getting.”
FOCUS GROUP
A focus group was conducted in a controlled classroom as a moderator led an open-ended discus-
sion. Twenty subjects were asked engaging questions regarding their personal thoughts of eBay. The age
range of the subjects was 18 to 25, falling within eBay’s target market of Millennial and Generation Z seg-
ments. The main objective of the focus group was to open up a discussion and gain insights to each de-
mographics’ online shopping behavior, as well as how eBay is perceived. The moderator asked sev-
eral questions ranging from what people shop for online, to what they believe eBay is, to what type of
advertisements they find appealing. The responses given by the subjects provided the auditors with qual-
itative data, as well as meaningful opinions and suggestions to persuade consumers to choose eBay.
MARKET RESEARCH
9. Overall, this question gave us a strong indication of how these potential consumers feel about the website, why
some choose the competitor, and further supported the lack of knowledge claim the target market has about eBay.
To further understand the Millennials and Generation Z’s judgement of eBay, the moderator asked the par-
ticipants to share their perception of eBay’s website. Many of the participants stated that they found
the website was visually unappealing (bland and dated) and inconsistent (lacked a theme). They es-
pecially disliked the low quality photos that sellers uploaded and the various background colors which
made the website look awkward, cheap, and disjointed. A majority of the focus group members agreed
that the website would be more visually appealing and enjoyable to browse if they were to enforce spe-
cific criteria for picture uploads to give the website a more common theme or a consistent background.
SURVEY
An online survey was administered to support findings of quantitative data after an abundance of qualitative data
was collected in the focus group. The objective of this survey was to uncover consumer’s feel-ings regarding
eBay, internet shopping, the competitor, perceptions of advertisements and trustworthiness of online shopping.
By distributing the survey strictly to Millennials, clear results of the target market’s purchasing habits were uncov-
ered. The survey resulted in a response rate of 9.4% or 188 respondents total with 75% identifying as female and
24.36% identifying as male. In addition, 96.15% of the respondents fell between the ages of 18 and 24 and 3.85%
of the respondents fell between ages 25 and 34. The survey verified that this generation spends time online daily.
In fact, 98.94% of the respondents use the internet multiple times per day, 56.38% access the internet primarily
on a smartphone, and 37.77% use a laptop. While on the internet, 88.48%of the respondents shop online. The fre-
quency of the respondent’s online shopping can be described as 0-1 times per month for 62.32% and 2-3 times for
35.51%, and four or more times for 2.17%. Please refer to Appendix A for the survey percentages and data figures.
In order to uncover the target markets feelings as to why they prefer to shop online the survey directly asked, “What
is your main reason for shopping online?” This question gave the respondents the option to choose all that applied
to them. The results showed that convenience (78.26%) was the main reason for shopping online followed by vari-
ety (57.25%) and better prices (56.52%). Another popular response was the ability for consumers to compare pric-
es by shopping online (34.78%). We also allowed the respondents the opportunity to write-in an option and where
common responses were: “it’s like getting a gift from yourself,” online exclusives, and availability of unique items.
ability of unique items. Fortunately, the target market’s main reasons for shopping online shows that eBay is
meeting the consumers’ needs as they offer variety, good prices, and unique items. Additionally, we asked re-
spondents what products they purchase most frequently online. Clothing (53.62%) was the most frequent online
purchase followed by personal products (14.49%), electronics (7.97%), home goods (6.52%), and books (9.42%).
When asked which online website the consumers purchase from most frequently, we found a large gap be-
tween Amazon, store websites, and eBay. Over half of the respondents use Amazon most frequent-
ly (57.25%), while one-third directly visit the store website. The results revealed that 1.45% use eBay most
frequently. They were also asked to rank Ali Express, Alibaba, Amazon, Craigslist, eBay, and Etsy in or-
der from most to least preferable. Notably, 122 respondents ranked Amazon as their most preferred,
while only two respondents ranked eBay as their first choice. The results further suggested that eBay is
a second-choice website for many (31.30%). Although there was a large gap between those who chose
Amazon over eBay for their first choice, only 1.74% of respondents ranked eBay as their last choice.
Several questions were asked to gain a better understanding of the generation’s purchasing trends and pref-
erences. When asked, “Why do you prefer Amazon?” the descriptions respondents most frequently selected
included easy, fast, simple,varietyofoptions, good layout ofwebsite, low prices, reliable,young, speedydelivery, ac-
cess to comments and ratings, and easyaccess to full books. These qualities granted us an insight on theirfeelings
regarding the competition. On the other hand, the responses to, “Why do you prefer eBay,” included good prices,
variety, easy, convenient, casual and quick. For the respondents that do not use eBay, we asked, “Why not?” The
results determined that the consumers are uncomfortable trusting strangers, the ambiguity of eBay’s processes,
andthatthe products are cheap in price aswell as quality. These responses aligned closelywith ourqualitative data.
tialformofadvertising(42.86%),whilenearlyone-thirdsaidthatword-of-mouthisthemostinfluentialform(32.33%).
In order to gain a better understanding of how to effectively reach consumers, the respondents were asked sev-
eral questions regarding how effective advertisements are. The survey concluded that 45.99% of the respon-
dents found advertising to be deceptive and only 6.57% find it to be credible. When asked what the most cred-
ible forms of advertisements are, word-of-mouth and advertisements were common choices. Others felt that
the least credible forms were social media and word-of-mouth. These controversial statistics further indicate
that the success of an online website is heavily impacted by personal experiences that are spread or reaffirmed
by word-of-mouth. Also, nearly half of the respondents found social media to be the most influen tial form
of advertising (42.86%), while nearly one-third said that word-of-mouth is the most influential form (32.33%).
9
10. Although a dominant number of respondents shop online (88.48%), it was also important to gain a bet-
ter understanding of why those who don’t shop online stopped or never tried. Often times previous poor ex-
periences online shopping led to their choice to only buy in stores. The common responses were: received
products that were poor quality, prefer to try clothes on in the store, online security, and cannot phys-
ically see the product. While eBay cannot overcome the barrier of consumers being able to physically hold
and see their products, they can persuade consumers to shop on their website by justifying their securi-
ty. Of the majority that do shop online, 94.16% said they feel comfortable using their credit card when mak-
ing online purchases. By ensuring eBay offers quality products and a secure website and then pairing that
with an effective advertising campaign, eBay can gain a competitive advantage through differentiation.
Ultimately, the survey results provided a variety of effective takeaways. Nearly 90% of the respondents shop
online (88.48%) which clarified that consumers enjoy the convenience and low prices that come with on-
line shopping. The results also indicated that the most effective ways to reach consumers is through print-
ed advertisements and social media ads. If the 88.48% of respondents that regularly shop online were to
see an eBay ad, they would likely be interested in the product and website because the data concluded that
very few respondents consider eBay their last choice (1.74%) so it must be in the consideration set. By en-
suring that consumers who follow through and pur-chase products receive them quickly and of expect-
ed quality, eBay can grow by improving its reputation through word-of-mouth. Furthermore, by understand-
ing why a majority of online shoppers choose Amazon, the separation between the competition and eBay
became clear -- respondents indicated that the competition’s website has a clean, consistent layout and
provides comments and ratings for each product. By adapting these characteristics, the playing field in
e-commerce will become much more leveled allowing eBay to compete more aggressively in the industry.
MARKETING
It is the goal of the integrated marketing plan to increase consumer awareness, differentiate eBay, and pro-
vide a contemporary advantage. The plan expands on how to reach the Millennial and Generation Z markets
who are the upcoming markets that have the potential to use eBay. The marketing plan was developed through
exploration of the designated target markets, positioning, and strategy efforts. The strategy must accurately
and efficiently differentiate eBay in a highly competitive e-commerce environment, especially when in com-
parison to the market leader, Amazon. Therefore, eBay must accentuate their features such as the 30-day
money guarantee, eco-consciousness, and the Connected Commerce platform. eBay must utilize effective
social media platforms and campaigns to strengthen the brand exposure and overall competitiveness. As a
result of this plan, sales are predicted to rise 4% by better serving the Millennial and Generation Z segments.
POSITIONING
The positioning of eBay must differentiate the brand in order to more effectively reach the target mar-
ket. When developing the positioning strategy, both target markets must be considered so that neither one
is alienated. Currently, the base of eBay users is categorized as an older demographic (21 Provocative eBay
Demographics). Ensuring that these users are not separated from the brand must be a point of empha-
sis. Additionally, the focus towards engaging the Millennial users will take the lead in strategic marketing
and positioning efforts. For both target markets, eBay will need to capitalize on current services that are well
known. Furthermore, eBay will need to generate awareness for lesser-known services. In doing so, eBay will
be able to capitalize on staple services for the current users, while offering new users a unique experience.
More specifically, the lesser-known services that eBay must highlight include ones such as the Buy-it-
Now option, the Close5, the Money Back Guarantee, and the eBay Valet program. A campaign that em-
bodies the new era of eBay and portrays these services will bridge the gap between the company and
their desired Millennial target market. The positioning strategy will also include multiple events to gen-
erate a buzz about eBay while allowing the general population to learn and engage with the brand.
The Millennial market is a market that is comprised of adventurous individual who are highly invested in the
digital world. For eBay to appeal to this segment, they must be innovative and exciting. What’s more, eBay
will need to focus on the 4 C’s in digital marketing: Content, Context, Communication, and Connectivity.
10
OBJECTIVES
11. By aligning their strategic positioning of the eBay brand with the 4 C’s, eBay will be able to cre-
ate content that users desire, furthering the communication of their message. Essential-
ly, doing this will boost the connectivity of users with eBay, and in return, increase their market share.
STRATEGY
With the heightened competition in the e-commerce industry and Amazon’s growing market share, it is impera-
tive that eBay differentiates itself and builds awareness of the value they have to offer. Currently, many consum-
ers are unaware of all that eBay has to offer, as it is thought to be solely an auction website (AMA Case, 2016). This
misconception was also addressed in the UWL focus group, where only 30% of the participants knew that eBay
was more than an auction website. These facts demonstrate the importance of having an advertising campaign
with the theme of awareness to inform and educate users and non-users of eBay services. Advertisements
must not raise awareness among consumers, but they must also entertain the Millennials viewers. Being that
eBay is in the e-commerce industry, their website is the primary platform that the company conducts its busi-
ness through. Therefore, the website is the most important component of success that the company can adapt.
There are several recommended changes for the website that will help eBay improve awareness of its products
and services. For example, a rotating banner that spans the width of the website to advertise services provided
by eBay such as Valet, Buy it Now, Close5, eBay’s money back guarantee, etc. This banner will cycle through
these promotions every three seconds to allow the users to learn about lesser-known services, and also see
more than one. In addition to this, it is recommended that the item categories that are currently underneath
the search bar be moved to the left side of the web page to make room for the banner. In turn, this will create
an open feel to the website design. This item category location change is in response to the UWL focus group
that uncovered complaints that the view of the website seemed crowded when and if a customer accidently
hovered over a category. In terms of website navigation, the addition of a filter that the customer would apply
after they chose a category, which filters results into subcategories of Buy it Now or Buy it Used will improve
clarity. Lastly, a related products bar will be beneficial for users. The related products bar will appear about
halfway to three-quarters of the way down the page, as opposed to being located on the bottom of the page.
Advertising via social media has proven great success when targeting to younger generations (Appendix
A). To make use of social media, eBay will develop three comparative advertisements informing consumers
about the features they offer. These ads will be created as 1-minute long YouTube videos that will be live on
eBay’s YouTube Channel. Each video segment will show two people having a conversation about items he
or she wants to purchase or sell including music, clothing, and furniture. Specifically, within each advertise-
ment, the videos will show two roommates conversing with one another. One roommate, Zoey, is a young,
Caucasian, blonde hipster. The other, Gabe, is a suave, Hispanic, Millennial male. Each of these advertise-
ments will highlight different situations with the intent to bring awareness to eBay and their Buy it Now, Va-
let, and Close5 features. The full scripts for each video advertisement can be found in the Appendix E.
The first video will show the interactions between two Millennial roommates, Zoey and Gabe. The in-
tention of this ad is to show the advantages of eBay’s Buy it Now feature and will be shown via the
eBay mobile app. Zoey is purchasing vinyl records through an auction on eBay. She elaborates on
the energy it takes to participate in the auction for multiple hours. Gabe replies with situational hu-
mor and in an instant, purchases a record player through the Buy it Now feature on the eBay app. The vid-
eo will bring awareness to both the Buy it Now feature of eBay, their mobile app, and auction service.
The main purpose of the second video advertisement is to make viewers aware of eBay’s Valet ser-
vice. The Valet service is a feature that allows individuals to have a certified eBay seller sell their prod-
ucts for them while still receiving 80% of the profit. Zoey was given designer clothing from her grandma as
a gift that she has no interest in and would like to sell them so that she can purchase a Polaroid cam-
era instead. Her roommate, Gabe, informs her about eBay’s Valet service that would allow her to ship or
drop off the clothing to a certified eBay seller while still receiving a majority of the profit. Zoey is thrilled to
hear this news because she will be able to then purchase the Polaroid camera she desperately desires.
The third advertisement brings awareness to eBay’s Close5. In this video, Zoey and Gabe are having a mild
disagreement regarding their couch. The disagreement evolves into a competition to see who can sell the
couch first. Gabe uses traditional eBay features to try and sell the couch, and Zoey uses eBay’s Close5 app.
This advertisement shows the ease of use with the Close5 app and potential quickness an item could be sold.
eBay will also enact a variety of guerilla marketing strategies. The purpose of these guerilla marketing strat-
egies is to reach the target markets in a way that is engaging, effective, and one that will resonate with the
potential consumers. The strategies will be featured in three major cities within the United States: Chicago,
11
12. New York City, and Los Angeles. Each of these cities will have a focused strategy including a concert,
street performance, and graffiti campaign, respectively. Through the use of these three performanc-
es, eBay will increase interest in the brand within the target market while promoting that everything used
in the guerilla marketing tactics was purchased on eBay. During each of these events eBay will spon-
sor a Snapchat Geofilter in LA and Chicago and will sponsor a Snapchat Geo-lense in New York. The es-
timated budgets for each event can be referenced in the budget (Appendix C). Through the use of
these three aspects, eBay will be able to increase brand awareness of the quality products on the site.
California. The first of the guerilla event will be a graffiti performance by the company Graffiti Murals on the
public art walls in Venice, California. The artists will perform while loud music is playing from large speakers
bought off of eBay. In fact, all of the paint, tools and equipment needed will be purchased through eBay. The
artist will paint a picture in relation to the comapny and then will indicate at the end: “I got it on eBay.” Finally,
the event will be streamed on Facebook Live to reach a greater audience than just the bystanders in California.
New York City. eBay will host live performances by street performers at the same intersection as the New
Year’s Ball drop, 42nd and Broadway Street. This corner is not only where the New Year’s ball drops, but is
also a popular tourist destination. eBay will require a SAPO permit and a amplified noise permit to perform in
Times Square. The show will last the entire day, with any number of performers upon a platform stage above
the ground. The performers will include but are not limited to jugglers, break dancers, magicians, sword swal-
lowers, baton twirlers, etc. All the props the performers will need will be provided by eBay. The event will be live
streamed on the FOX screen by Sony in Times Square for others to see, they will stream this for 6 hours which
will cost $45,000. Along with the exposure on the FOX screen eBay will gain social media exposure as the view-
ers will be posting videos and pictures to their social media sites. For the eBay snapchat lens, during the gue-
rilla marketing event in New York, it is recommended that eBay creates a connection between the lens and
the activities going on around the city. This will be best represented by a lens that flips your head upside down
when opening your mouth. Once the head is flipped there will be a background that has a small, unisex, ani-
mated body that is placed on the top of the screen so that it lines up with the upside down head. The portrait
would then begin to spin imitating a break dancer doing a head spin. Lenses tend to reach a much larger audi-
ence on snapchat then geofilters and would grow interest in the event just by being an option around the city.
Chicago. The last of the three events will be in Chicago. eBay will sponsor a pop up concert at the Jay Pritz-
ker Pavilion in Millennium Park, Chicago. A pop up concert is a concert in which three weeks prior to the event
eBay will announce that they will be promoting a concert in Chicago. One week prior eBay will announce that
Diplo will be performing; costing $175,000 (Talent, 2016). Two days prior to the event eBay and Diplo will an-
nounce that the concert will be in two days and lastly at 3:00 pm the day of the concert eBay will announce the
exact time and location. Creating a pop up concert such as this will create a sense of mystery and excitement
among the masses. Having eBay hold off on releasing all the information about the event right away will make
the interested attendees stay guessing. It will also make them continually checking eBay’s social media posts
as that is where eBay will be announcing everything. At the event eBay will give away promotional apparel and
accessories including phone wallets, t-shirts, portable charges, water bottles and drawstring bags. This con-
cert will provide an efficient way for eBay to get to the forefront of the minds of Millennials for online shopping.
As previously stated, the focal point for eBay is to create awareness within the Millennial generation and Gener-
ation Z. Creating awareness can be done through many strategies, however, the most effective will be to have
giveaways that allows consumers to try out the products that are sold on eBay. Doing this will allow consumers
to try the products as well as the overall process of buying items off of eBay without having to pay for anything.
eBay will have a promotional sweepstakes event at the beginning of the 2017-2018 school year. For this sweep-
stakes event to be successful, eBay must gain the attention of the target market at the right time. All public uni-
versities hold freshmen orientation in the middle of the summer. This is also the time when students begin dis-
cussing room décor and the crucial college materials they will need as they enter their first year at college. Which
is why, during this exciting time, it is recommended that eBay has representatives at select colleges at the start of
orientation. These representatives will encourage the students to enter into the “eBay Dorm Makeover Sweep-
stakes.” There will be ten schools chosen all across the country and each school will have two winners of a $5,000
gift card each, for a dorm renovation, to eBay. It is recommended that there is ten schools chosen from across
the country so that different types of environments are present, as well as it will reach a larger target segment.
Once all participants have entered into the sweepstakes two winners from each school will be chosen. During
Welcome Week an eBay representative will knock on the door of the winning students and present them with
a $5,000 gift card to eBay. Doing this during welcome week in the dorms will provide eBay with a lot of ex-
posure as the winning students will be excited and will want to share their winnings on social media with their
friends. Also, other students will be posting the excitement and reactions of the winners on social media,
12
13. which will give eBay free social media exposure. Once the winners have bought what they want for their dorm,
they will then post their new dorm room on social media as well, once again giving eBay free social media expo-
sure. Once all participants have entered into the sweepstakes two winners from each school will be chosen. And
then during welcome week an eBay representative will knock on the door of the winning students and present
them with a $5,000 gift card to eBay. Doing this during welcome week in the dorms will provide eBay with a lot
of exposure as the winning students will be excited and will want to share their winnings on social media with their
friends. Also, other students will be posting the excitement and reactions of the winners on social media, which
will give eBay free social media exposure. Once the winners have bought what they want for their dorm they
will then post their new dorm room on social media as well, once again giving eBay free social media exposure.
Lastly, eBay will create eBay sponsored repair cafes. These are shops where any average Joe can go in with their
broken electronic devices (everything from phones to toasters) and fix them themselves. Specifically, eBay will
open four of these eBay sponsored repair cafes through offering grants of $250,000 each to four individuals who
want to run the various locations. They will be experts in small electronic repair and will provide help four days per
week on how to fix broken electronics so that the users can continue to use their products and keep them out of
landfills. This directly translates with how eBay started to repurpose products. Moreover, this translates to how
eBaygives backtothe community,which is somethingthatthetargetsegments lookforin brandsthattheychoose.
Integrated Marketing Communication Plan
Millennials and Generation Z are unique demographic types in terms of which advertising mediums are most
effective. In order to effectively reach the target market, it is important to utilize multiple marketing tactics.
For eBay, it is recommended that these tactics include social media advertising campaigns, guerilla market-
ing events, a promotional sweepstakes, and a corporate social responsibility initiative. The implementation
of the tactics listed will allow for efficient marketing that aim to increase for engagement and interaction with
the target market. In addition, these advertising tactics will provide awareness of all that eBay has to offer.
The first segment of the advertising campaign will launch in July of 2017 through the first week of September (See
Appendix for detailed timeline). This marketing implementation will be the eBay Dorm Makeover sweepstakes that
will award a $5,000 gift to incoming freshmen at chosen universities. As mentioned, the sweepstakes will begin
in July, when eBay representatives will attend the freshmen orientations at 10 universities and enter participants
in the sweepstakes. Having participants provide personal information, name/age/email/etc., will be of great val-
ue for eBay moving forward with additional targeted marketing efforts. eBay Dorm Makeover sweepstakes will
then end at the beginning of the school year. The winners will be selected one week prior to welcome weekend.
The next segment of the marketing campaign is the promotion of the eBay sponsored repair cafes. Repair cafes
are, and will be, a place for people to come in to learn how to fix items that they have that are not properly working,
without scrapping them and sending them to a landfill. Skilled workers that have knowledge in repairing a variety
of items will guide these visitors. These efforts will be promoted exclusively through eBay’s social networking
accounts on their used platforms. Primarily, eBay will broadcast via Facebook Live to show followers what these
repair cafes are all about and where to find them. This approach allows eBay to promote without spending mon-
ey on paid advertisements. Instead, it will rely on eBay’s follower base to promote and share the steamed Face-
book live videos that are saved after the live event has concluded. eBay will be sponsoring these repair cafes
by donating $250,000 to each of the cafes so that they can continue their operations. This type of corporate
social responsibility initiative will grab the attention of the eco-friendly Millennial market as it provides a second
life to peoples’ everyday items are in need of a tune up, thus reducing waste. These eBay sponsored repair cafes
are a relatively inexpensive way to show that eBay is continuing to take strides towards reducing landfill waste.
The third segment of the advertising campaign will include the series of three YouTube videos that will be
used as the basis for all digital advertisements. These advertisements will run on two-month intervals,
which can be seen in the promotional campaign timeline in the appendix. It is crucial to maximize the reach
of these advertisements for the overall success of this campaign. Depending on which medium is used, the
ads will differ slightly in length and format, but the implementation will be relatively similar. The advertise-
ments will be delivered through the digital platforms of Facebook, Instagram, YouTube, Spotify, and Snapchat.
13
MARKETING TACTICS
14. Facebook
With the target markets being Millennials and Generation Z, Facebook is an important advertising medium for
the campaign. eBay has 9,427,241 “likes” on their verified Facebook page. Facebook and the ability to share
video content will be a great asset when promoting the YouTube videos. According to an article posted by So-
cial Times about advertising to Generation Z, video ads shorter than 15 seconds have a 124% higher completion
rate than 16 seconds and higher, humorous videos drive up a 72% higher video completion rate, and Genera-
tion Z is the most diverse generation in American history, being mostly Hispanic (Connecting with Generation
Z, 2016). Therefore, eBay will adapt and advertise the videos to use on Facebook for 15 seconds sponsored
ads. The ads will retain the comedic nature of the original videos, and will show eBay’s brand in the first three
seconds. Facebook video advertising is a strict procedure that must follow a few of the network’s guidelines.
They strive to not only allow company’s advertisements reach people receptive to their ads, but to also have
users see something they may be potentially interested in. Thus, how much money eBay offers to place their
ad does not have any advantage over an ad with more use value. However, eBay will still bid their advertise-
ments to fulfill all factors; bid maximum you are willing to pay, create compelling ads, and target them to the
right audience (Facebook Business, 2016). Facebook Live will also play a vital role in the promotion of eBay’s
guerilla marketing events. eBay will stream the events live on their Facebook account, engaging with viewers,
and encouraging them to come check out the event if they are near. These videos will be stored on eBay’s
Facebook page after the live portion is completed, allowing eBay to use these videos for further promotion.
Instagram
Instagram is an important platform to use when advertising because it has an engaged audience of over
300 million daily users. Of those daily users, 248,000 people are currently following the eBay account. Hu-
man brains can process visuals 60,000 times faster than text (Global Spotlight), making it easier for our cus-
tomers to quickly focus and process our message while they are scrolling through their feed. Instagram of-
fers three possible forms of advertising; image, video, and carousel. Of these three options, it is suggested
that eBay utilizes the carousel ads. This format uses a series of images to create a sequenced story. The
eBay ad will be aligned with our three video advertisements, and will include three different pictures from
each of the three video advertisements. The carousel advertisements can then be used to encourage cus-
tomers to find out more information about the services of eBay by clicking on the “learn more” link under
the photos. Additionally, tags can be included that will allow customers to find out more information about
the products that the actors in the advertisements are purchasing. For example, a tag could be created for
Zoey’s vinyl’s that she purchased, which will lead customers to view a variety of vinyl’s on eBay’s website.
YouTube
The use of YouTube is critical to the campaign as it will be the nucleus for the video advertisements. You-
Tube is a medium that will allow eBay to reach the target consumer. In the target audience of Generation Z
, 8/10 use the YouTube. By having the videos created for this platform eBay will have the potential to reach
the large target market. When advertising on YouTube, advertisers pay per view of their ad, with an average
cost-per-view ranging between $.10 – $.30 (Schonfeld, 2011). One of the most important aspects with us-
ing YouTube is that if the viewer skips the advertisement before the end there is no cost incurred. In addi-
tion, YouTube allows an advertiser to display an ad in four different ways: In-search (appears above YouTube
search results), In-Slate (ad shows up in the suggested videos at the end of the video you’re watching), In-dis-
play (an ad is displayed in the suggested videos besides the video you are currently viewing), and In-stream
(the ad plays before you can view your desired video) (Schonfeld, 2011). Out of all the advertising options
available eBay will use the In-stream advertisements. YouTube viewers are not going to go out of their way
to watch advertisements on the website, so In-Stream advertisements allows the ad to be seen by the con-
sumer without actively looking for them. eBay will run 30-second, abbreviated versions of the video segments
so that they cannot be skipped by the consumer in order to gain maximum exposure to the advertisement.
Spotify
Spotify is another important platform to reach our target consumer. Users of Spotify who do not pay for the Pre-
mium service are subject to advertisements. When users of Spotify are in the platform, they can pick a song, sta-
tion, or playlist to listen to and continue about their day. Being that Spotify can be used on multiple devices, Spotify
has created multiple ways to advertise. Spotify allows advertisers to choose between branded moments, spon-
sored playlists, sponsored sessions, video takeover, audio, display, and more. Due to the fact that the interaction
with the platform is primarily to choose the music, then left alone while users continue their day, eBay will need
to focus on Audio Ads on Spotify. Audio ads for eBay will adapt each of the 1-minute YouTube videos extracting
audio and condensing it into a 30-second ad aimed at spreading awareness for eBay services. The image that
will appear will be the eBay logo along with the two characters from the ads. These audio ads will hit the top notes
of the 1-minute videos to properly convey the benefit and value of eBay. Additionally, these ads will have the
ability to have users click the hyperlinked image when they are interested by the content of the advertisements.
14
15. Snapchat
The last platform used of the campaign will be Snapchat. As described above in the strategy, eBay will host
three different events in three different large metropolitan cities across the U.S. During these events, eBay
will sponsor Snapchat Geofilters (Appendix F) that will be accessible only in the area of the event to help
fuel local awareness. By using more non-traditional marketing, such as Snapchat, eBay will be able to mar-
ket to younger audiences in an engaging, far reaching, and cost-effective way. It is recommended that eBay
use “sponsored” local geofilters as they are the most affordable of all Snapchats offerings and they are
more transparent. Furthermore, the cost will depend on two variables: the length of time and the geograph-
ic area for the filter. Snapchat charges approximately $5 for every 20,000 square feet and $100 for every six
hours. For example, the Snapchat lens for New York will cost $500,000 (Snapchat Advertising Costs, 2016).
Distribution Plan
The shipping and distribution aspect of eBay’s business process has been both positive and neg-
ative over the course of its existence. While distribution relies heavily on the connection with vari-
ous external logistic companies, there are internal aspects that eBay does have control over. In gener-
al, eBay does fairly well with informing users of shipping options, as well as displaying delivery dates. In
regards to external logistics, eBay has strong relationships established for the shipping of their products.
However, there are a few recommendations to improve eBay’s current shipping process. These recommenda-
tions are broken down into two categories: user-resellers and online clarity. For user-resellers it is important to
improve the ease of use, taking away stress from the sellers, thus increasing the turnaround time on product
shipments. To do this, eBay can allow sellers to print shipping labels that cover the shipping costs of the product.
Under this method, sellers will simply print off their labels, visit a UPS/FedEx location, box the product, and then
ship. In addition, the sellers will agree to have their product shipped within two days of the order being purchased,
further shortening the shipping time. Once the product is received, the money will then be transferred to the seller.
Further expansion and increased online clarity will be achieved through the development of shipping filters. These
shipping filters will allow users to look at the different shipping options, not necessarily change the amount of time
it takes to ship, simply allowing customers the ability to view their options. Filter options will range from between
local, national, and international. Not only will location filters be provided, but customers will also have the option
to choose between free, flat rate, and calculated cost shipping options on all products. All in all, providing users
more customization to their shopping experience will aim to improve their overall acceptance ofthe eBay interface.
National Distribution. Distribution on the national scale is an area that eBay needs to increase focus. Current-
ly, there are issues with shipping time periods, clarity of shipping options, and awareness of shipping locations.
With shipments taking longer periods of time than that of competitors, eBay may face a reduction in the num-
ber of orders placed. Moving forward, it will be crucial for eBay to improve on these points of weakness to en-
sure that their customers have a positive experience, and therefore, encouraging them to become repeat users.
When focusing on national distribution success, the first objective will be improving the clarity of ship-
ping options for products. Product location is included on most items, however, the smaller font de-
creases the likelihood of potential customers locating and reading the description. The chance for over-
looking this area may increase when users are rushed or only concerned with a few product specifics.
Highlighting the location as a separate main section underneath the “Shipping” section will allow users to
clearly view the origin of shipment, which may be a determining factor of their purchase as it effects deliv-
ery dates. Location prominence will be an essential piece of heightened transparency for the national user.
Another way to improve the national distribution experience is through the encouragement of package person-
alization for private sellers. In an effort to build a true community of buyers and sellers, eBay can promote the in-
clusion of personal touches such as a handwritten thank you note. Connecting buyers and seller in this way has
the ability to reinforce the reason that they purchase the item from eBay and improve their value-added features.
Global Distribution. Notably, some products being shipped to a customer in the United States may only
be available from China, India, or other foreign countries which makes two-day shipping nearly impos-
sible at standard rates. While some may see this as a disadvantage, it may actually be one of eBay’s
greatest strengths. Connecting customers with unique product offerings from areas around the world
that other competitors cannot provides a level of value that simply distinguishes eBay in the market-
place. While there is value in saving shipping time, for eBay, the value lies directly in the products them-
selves. eBay loyalists know this and that is exactly what needs to be conveyed to other potential customers.
15
16. Furthermore, using the shipping filters previously explained, customers will be able to explicitly see and choose
the origin of their products. Allowing customers to choose between shipping locations will give them the pow-
er to dictate desired shipping time and potentially even price of the product. Currently, eBay has the ability to
use a filtration system that allows users to change the country to ship to-- not country of origin. Expanding this
filtration system as a pre-product selection tool will give users the transparency that is not currently available.
Pricing Plan
At this given point in time we do not recommend any changes to the pricing structure eBay currently has in place.
We believe this would be an ineffective approach and may take away from the multimillion dollar annual revenue
eBay has accrued. However, this topic will certainly be readdressed after the implementation of this campaign.
Following the execution of the IMC plan, it will be crucial to accurately measure the reach, efficiency and
overall effectiveness of the various marketing efforts. To measure the campaign’s success, specific av-
enues will be conclusively used with specialized metrics including sales analysis and social media analytics.
In an effort to reach a larger audience and gain more website recognition, eBay will be focusing all IMC efforts on
above-the-line tactics. To ensure accurate measures of the effectiveness of the promotional efforts, a careful
analysis of sales before and after the marketing campaign should be calculated. Sales will also be forecasted
without the implementation of the marketing plan which will allow eBay to gain insight as to where their revenues
stand without any additional costs in advertising. After calculating these sales projections, the marketing team
will then calculate the break-even analysis and sales projections that take into account the added marketing
costs. The benchmark that will be used when looking at increase after implementation will be a conservative
estimate of 6%. After both sets of figures for pre- and post- implementation are calculated, eBay is encour-
aged to execute the marketing plan as described. The completion of all advertising efforts will allow eBay to
make direct comparisons between both projections, evaluating the effectiveness of each of the installments.
Furthermore, the focus of advertising on social media is to spread awareness and provoke engagement of the
brand to the Millennials and Generation Z. Fortunately, the majority of social media platforms provide built-in
analytical tools, allowing companies to seamlessly track advertising performance. eBay will be using Facebook,
YouTube, Snapchat, Instagram, and Spotify, all of which have platforms with analytic functions as an option.
With that, eBay’s key performance indicators (KPI’s) should involve reach, engagement, and impressions. eBay
can also utilize Facebook Ads Manager, a service that allows the company to see which days the advertise-
ments are performing the highest, weekly spending, and other relevant information for the campaign. In addi-
tion, the Facebook Ads Manager can be used to track the effectiveness of the Instagram advertisements (Mar-
san, 2016). Finally, eBay will measure the effectiveness of its YouTube advertisements through a few built-in
metrics such as engaged views within the target market, the amount of shares the ads receive, and subscribers.
Sales Forecast
As of quarter two of 2016, eBay.com’s total gross merchandise value was $19.8 billion and eBay INC’s to-
tal gross merchandise volume (GMV) was $20.9 billion (AMA Case 2016). Within the first year of the mar-
keting campaign eBay is expected to increase its sales at a slow and steady rate up to 4%, by the end of
the campaign. After the first year of the campaign, the sales will fluctuate between quarters. However,
sales are expected to continually rise at the end of each year for the next four years albeit at a slower rate.
16
MEASUREMENT &
EVALUATION
23. 23
APPENDIX A: SURVEY DATAAPPENDIX B: TIMELINE
TIMELINE
July 2017
• Promotional sweepstakes sign-up
August 2017
• Donate funds to the eBay sponsored repair shops
• Promote repair shops on eBay’s social platforms (Facebook, Instagram, YouTube, etc.)
September 2017
• Promotional sweepstakes winners are announced
• Sweepstake winners promote their winnings on their social media
October 2017
• Begin the “Buy it now” advertisement on all social media platforms mentioned
November 2017
• Continue to run the “Buy it now” advertisements
December 2017
• Begin the “Valet” advertisement on all social media platforms mentioned
January 2018
• Continue to run the “Valet” advertisement
February 2018
• Begin the “Close5” advertisement on all social media platforms mentioned
March 2018
• Continue to run the “Close5” advertisements
• Announce the LA Event on eBay owned platforms
April 2018
• Advertise the Los Angeles (Venice Beach) event on eBay’s social platforms
• The Los Angeles (Venice Beach) event will take place the last weekend of April (4/29)
• Announce the New York event on eBay-owned platforms
May 2018
• Reveal the New York event on eBay’s social platforms
• The New York event will take place on May 20th
• Publicize Chicago event on eBay-owned platforms
June 2018
• The Chicago event will take place on June 10th
• Share videos and images taken from all the events on eBay-owned platforms
24. 24
APPENDIX D: SALES
FORECAST
APPENDIX C: BUDGET
Sales Forecast (In Billions)
2017-2018 Q1 Q2 Q3 Q4
1.00% 1.50% 2.50% 4.00%
$20.00 $20.30 $20.81 $21.64
2018 2019 2020 2021 2022
- 4.75% 5.25% 5.50% 5.75%
$21.64 $22.67 $23.86 $25.17 $26.61
Promotionional Sweepstakes
20, $5,000 winners $100,000
Digital Media
YouTube Pay-per-view ads $450,000
Facebook CPC Allowance $550,000
Instagram $400,000
Spotify $370,000
Snapchat Geofilters $100,000
Snapchat Lens $500,000
Digital Production for 3 ads $500,000
Actors $60,000
Guerilla Events
California $70,000
New York $600,000
Chicago $300,000
Sponsorships
eBay repair shops $1,000,000
Total Cost $5,000,000
25. 25
APPENDIX A: SURVEY DATA
APPENDIX B: TIMELINE &
BUDGET
APPENDIX E: YOUTUBE
ADVERTISEMENT SCRIPTS
Guy: Hispanic – Gabriel “Gabe”
• Darker hair, suave, metro,
Girl: White – Zoey
• Sandy blonde, hipster, one dread, choker, sweet new hairstyle every commercial
Buy it Now Vs Auction
Music Items
*Gabe walks in room as Zoey lets out excited yell*
Gabe: What’s up Zoe? Why are you so excited?
Zoey: I just bought these (insert hipster music here) vinyl’s at about half price after bidding for the
past eight hours!
Gabe: Wow, wasn’t that pretty stressful?
Zoey: No, not really, eBay has this cool feature where you can just set a limit to how much you want
to bid and then you don’t even have to worry about the bidding.
Gabe: Wow that’s pretty cool....*little pause*….don’t you need a record player for those though?
Zoey: Oh........right.
*Gabe pulls out phone and up close shot of phone showing him scrolling through the eBay app*
Gabe: Hold on.....and.......DONE! Just bought one!
*Shows her his phone and purchase of record player*
Zoey: Wow that was fast!
Gabe: And easy! You also get a 30 day money back guaranteed on all items purchased!
Zoey: Wow! eBay sure is amazing!
*Shows eBay logo*
Narrator: eBay, get the best of both worlds with the new Buy It Now feature!
Valet Vs Personal Selling
Fashion
*Gabe walks into room and sees Zoey surrounded by clothes that don’t match her hipster style while she
looks at a computer stressed out
Gabe: Hey Zoey, what are you doing?
Zoey: My grandma bought me these designer clothes but they’re way too mainstream for me. I
want to sell them all by myself on eBay so I can buy a polaroid camera instead, but I just
don’t have the time.
Gabe: You should give eBay Valet a try!
Zoey: eBay Valet? Sounds like eBay’s going to park my car for me.
Gabe *laughs: No it’s a service on eBay where highly qualified sellers sell your products for you!
Best part is you get up to eighty percent of profit without the effor t of having to track down
a buyer.
Zoey: Great but isn’t it a pain to get the product you want to sell to the Valet?
Gabe: Not at all! You can either ship it for free or drop it off at one of eBay’s nearby drop off sites.
Zoey: Wow that’s actually pretty cool! Looks like I’ll be able to sell all these clothes and still be able
to make open mic night at the coffee shop. *checks watch* Oh I better get going! *grabs
nearby guitar case* Thanks for the tip Gabe! *Leaves apartment*
Gabe: No problem! *Gets alert from phone and pulls up the eBay app* Speaking of selling my
superbowl jersey I’ve been trying to sell on eBay just got bought and I get to keep all the
money. Oh baby! *Does awkward dance, realizes how awkward it is, stops and proceeds to
scroll through eBay as “eBay, sell your way” or some other slogan thing is said with the eBay
logo appearing on screen*
26. 26
Close5 Vs Traditional eBay
Furniture
*Camera shows whole room, showing multiple blow up plastic furniture Gabe is sitting awkwardly on a
plastic inflated couch*
Gabe: Ugh.
*Zoey Enters the room with a bag from Whole Foods*
Zoey: Hey man what’s up?
*Gabe make overdramatic squeaking noise while moving on couch*
Gabe: “Can we please get some real furniture? At least a couch.”
Zoey: “But its made from recycled plastic from garbage island.”
*Gabe angrily kicks the plastic inflated couch across the loft knocking the tapestry off the wall *
Zoey: “hey my tapestry!”
Gabe: We need some real furniture besides the hammock.
Zoey: Okay but we need to sell this couch.
Gabe: Let’s just throw it away just like a plastic bag.
Zoey: No! Then it’ll go right back to garbage island. We need to sell it. Someone must need a
plastic inflatable couch.
Gabe: There is no way anyone one would buy this couch.
Zoey: Bet you $5 dollars I could sell this couch before you can.
Gabe: You realize I sell cars for a living.
Zoey: I’ll just use my phone.
*The scene moves to show Gabe going on eBay to sell the couch. Zoe looks over his shoulder and sees
an add on the screen for Close5.*
*Zoey pulls out her phone, downloads Close5, and proceeds to post the couch on the platform.*
*Screen goes black to show time pass*
*Door bell rings*
Gabe: Who’s that?
*Zoe typing a thank you note on her typewriter*
Zoe: “Oh I already sold the couch using eBay’s Close5 app”
*Gabe shows his face change to surprise as he closes his computer furiously*
Zoe: “Im going to look at a new couch if you want to come.”
Gabe: Sure. *Hands her the five dollar bill*
28. 28
APPENDIX A: SURVEY DATA
APPENDIX B: TIMELINE &
BUDGET
APPENDIX G: REFERENCES
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