MAR 4333521

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MAR 4333-521

• E-Commerce Marketing
• Fall 2002Sarasota
• Customer Interface
• Rich Gonzalez
• November 2, 2002 (Week 10 Saturday)

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URLs (Well probably Visit Today)

• www.useit.com
• www.wsj.com

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Agenda November 2, 2002

• Optimal Pricing Technology
• Business/Innovation AnalysisPocket PC Mobile
  Edition
• Customer Interface
• Digital-Based Innovation
• Due For November 9

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For Today November 2

• The Power of Optimal Pricing, p68, Business
  2.0, July 21, 2002
• Doing a Job On Labor, p28, BusinessWeek, October
  21, 2002
• Chapter 6Customer Interface
• Find one website and make a comment on it (on
  listserv) per Chapter 6
• Analysis Paper 3

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BusinessWeek Prices

• Prices Not Rising As Fast
• Disinflation
• Profits Squeezed
• Decrease Costs
• Differentiation Pricing Power

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The Power of Optimal PricingPrice Optimization
Software

• ObjectivesRevenues, Profit, Units, Share
• ContextStore, Region, Chain
• DemandTec---
• PriceAmountsFrequencies
• Cost-Plus Pricing Is Predominant
• Discrimination is Good? (Amazon.com)

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Myth Consumers Care Only About Prices Online
Percentage of Customers Who Care About Attribute
Attribute
Source JP Morgan Report etailing and the five
Cs
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For November 9

• www.useit.comBe ready to tell us what Jakob
  Nielsens philosophy/guidelines are.
• The Last LaughAmazon, September 2002, Business
  2.0

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Analysis Paper 3

• Subject Pocket PC Phone Edition (p4 of
  BusinessWeek)
• Context Business/Innovation Analysis
• Criteria (use bolded headings)Value (Cluster)
  Proposition (not financial model yet)
  StandardsMarketing Opportunities
• Use the WWW including Virtual Library for at
  least one reference to the product/company/technol
  ogy details.
• Length 1.5 Pages, single-space, stapled cover
  sheet
• Due Monday November 2

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T-Mobile--Value Proposition

• Portability
• Users are always connected
• Organizer
• Microsoft applications Excel, Word
• Wireless
• Blue (screen)
• Clear voice quality
• Speakerphone
• Fast bandwith---56K/secspeedy data
• Global standard

In Class Exercise
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T-Mobile--Value Proposition

• Targets
• Young Business Professionals
• Business Professionals
• Businesmen
• Innovators Early Adopters

In Class Exercise
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T-Mobile--Standards

• GSM
• GPRS
• 56K/sec
• Max 171 K/sec
• WiFi (80211.b) capable
• Microsoft Application StandardsI.e., Office
• SmartCard Storage Media
• Security for transmissionunique ID

In Class Exercise
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BandwithConsumer Context

• Dialup
• ISDN
• Cable
• DSL
• T1
• 802.11b
• 3G

• 56 K
• 128 K
• 150 to 300 K
• 100 to 500 K
• 1400 K
• 300 to 500 K
• 144 K

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T-MobileMarketing Opps

• More difficult because of long name
• 72 million subsribers T-Mobile
• Exclusive service (temporarily)
• Different services for each segment, I.e.,
  reservations checking,
• Camera picture transmission
• Dating services
• Restaurant, travel, real estate, information
• Film location hunters

In Class Exercise
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Last time

• Digital AmplificationMovie Mask
• Business Models

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Components of a Business Model
Developing a business model in the networked
economy requires four key choices on the part of
the senior management
Value Cluster

• Specify the value proposition or the value
  cluster for the business

Marketspace Offering

• Articulate the online product, service and
  information offer

Resource System

• Define how the company needs to align its
  resources to deliver the value proposition

• Define and select the most appropriate revenue
  model to pursue

Financial Model
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Customer Interface
Technology-mediated interface
People-mediated interface
Face-to-face interaction
Screen-to-face interaction
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Customer Interface

• Virtual Representation of Firms Value
  Proposition
• Information
• Navigation
• Is the site worth spending time at?Should I
  flee?
• i.e., Download Time
• War Developers vs. Marketers(Customers)
• Brand?

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Sample Sites

• www.disney.com
• www.cdnow.com
• www.gap.com
• www.landsend.com

• www.oldnavy.com
• www.homedepot.com
• www.nissanusa.com
• www.maxstudio.com
• www.honda.com
• www.etrade

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3 Fundamental Business Shifts

• 1. Most transactionsB2C, B2B, C2C and G2C will
  become self-service digital transactions.
• 2. Customer service will become the primary
  value-added function in every business. Personal
  consultancy not routine services.
• 3. The pace of transactions and customer needs
  for customer service will force firms to adopt
  digital processes---for survival.

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No Frills Discounter

• www.overstock.com
• Kind of like outlet malls
• www.cdbaby.com

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Rich E-tailer

• www.FAOschwarz.com
• www.barneys.com
• www.disney.com
• Less Selling, More Content

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Design Principles

• FitHow do the 7Cs support the business model?
• ReinforcementDegree of consistency between each
  of the Cs

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Jakobs Law of Internet User Experience

• Users spend most of their time on sites other
  than on yours.

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Jakobs Nielsens Homepage Guidelines

• Generally apply also to the entire website.
• Has Several. Well Use Only 8

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Jakobs Nielsens Homepage Guidelines

• 1. Communicating the Sites Purpose
• 2. Communicating Information About the Company
• 3.Content Writing
• 4. Navigation
• 5. Search
• 6. Graphics and Animation
• 7. Customization
• 8. Fostering Community

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Customer Interface

• Virtual Representation of Firms Value
  Proposition
• Information
• Navigation
• Is the site worth spending time at?

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The 7Cs of the Customer Interface
Context Sites layout and design
Content Text, pictures, sound and video that
webpages contain
Commerce Sites capability to enable commercial
transactions
Community The ways sites enable user-to-user
communication
Connection Degree site is linked to other sites
Customization Sites ability to self-tailor to
different users or to allow personalization
Communication The ways sites enable site-to-user
communication or two-way communication
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7Cs Framework

• of Interface Design

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Dimensions of Context
The context of a site can take many different
forms the two key context dimensions are
function and aesthetics
Function
Aesthetics

• The layout of the site
• Section breakdown
• Linking structure
• Navigation tools
• The performance of the site
• Speed
• Reliability
• Platform independence
• Media accessibility
• Usability

• The aesthetic nature of the site
• Color scheme
• Visual themes

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Context Archetypes

Content archetypes refer to broad, generic
approaches to context design
Aesthetically Dominant
Functionally Dominant
Integrated

• High form low function
• Look-and-feel of the site is the primary emphasis
• The site is slow to load, limited in information

• Low form high function
• Focused on the display of textual information
• The visual design is limited
• Pure text no graphics, sound or animation

• Balance of form and function
• Attractive and easy-to-use interface
• The use of a clear design theme, small images and
  plenty of white space

LandsEnd.com vs. LuckyJeans.com
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Five Content Archetypes

• One-stop shop with a wide range of goods in
  multiple product categories

Superstore
Offering Dominant

• Exclusive provider of products and services
  within the specific category

Category Killer

• Focus on exceptional quality and exclusivity
  while selling single or multiple categories of
  products

Specialty Store

• Provider of information goods although physical
  products can be purchased as a complement
• Sites are generators, sources or aggregators of
  content

Information Dominant
Market Dominant

• Provider of place for transactions, where
  buyers and sellers come together to conduct
  business

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Content Archetypes Ex.

• Superstore amazon.com
• Category Killer petsmart.com
• Specialty Store Williams-Sonoma
• Information Dominant Business 2.0
  useit.com
• Market Dominant buy.commerx.com

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Community

• User to User Interactions
• www.ebay.com
• www.nytimes.com

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Customization

• Sites Ability To Tailor Itself Or Be Tailored By
  (Or For) Each User
• Marketing MantraKnow Your Customer(s).

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Customization

• PersonalizationThe Customer Does It
• TailoringThe Firm Does It
• ex. www.wsj.com

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Communication

• Dialogue of user and site
• AsynchronousSite to UserUser to Site
• SynchronousLive Talk/Chat--------LandsEnd

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Connection

• ConnectionsAffiliatesRevenue
  SharingMarketingComplementary ProductsCustomer
  Acquisition
• Distracting?

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Commerce

• Selection
• Pricing...Shipping
• The Shopping Cart
• Approval and Payment
• Can you avoid this experience? (browsing,
  selection, approving, paying?)
• www.half.com

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Community

• User to User Interactions
• www.ebay.com
• www.nytimes.com

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Communities Elements, Types and Benefits
Elements of Community
Types of Communities
Member Outcomes Participation and Benefits
Just Friends
Degree of Participation

• Cohesion
• Effectiveness
• Help
• Relationships
• Language
• Self-Regulation

Enthusiasts

• Need Fulfillment
• Inclusion
• Mutual Influence
• Shared Emotional
• Experiences

Friends in Need
Players
Traders
Community includes a feeling of membership in a
group along with a strong sense of involvement
and shared common interest with that group
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Customization

• Sites Ability To Tailor Itself Or Be Tailored By
  (Or For) Each User
• Marketing MantraKnow Your Customer(s).

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Customization

• PersonalizationThe Customer Does It
• TailoringThe Firm Does It

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Or...

• PersonalizationThe Firm Does It
• CustomizationThe Customer Does It
• ex. www.wsj.com www.landsend.com

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Dimensions of Customization
Personalization
Tailoring

• Log-in Registration
• The site recognizes returns users and configures
  itself accordingly
• Cookies
• Temporarily files that track and gather data
  about users behavior
• Personalized E-mail Accounts
• Provided free-of-charge to site users
• Content and Layout Configuration
• Selection is based on users interests
• Storage
• Sites provide virtual hard-disk storage
• Agents
• Designed to perform simple tasks

• Based on Past User Behavior
• Many sites adjust themselves dramatically based
  on a users behavior and preferences
• Based on Behavior of Other Users
  With Similar Preferences
• Some sites make recommendations to the user based
  on preferences of other users with similar
  profiles

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Communication

• Dialogue of user and site
• AsynchronousSite to UserUser to Site
• SynchronousLive Talk/Chat--------LandsEndDemo

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Dimensions of Communication
Broadcast
Interactive

• Mass Mailings
• Broadcast transmissions of large volumes of
  e-mail targeted at large audiences
• FAQs
• Answers to frequently asked questions
• E-Mail Newsletters
• Inform site subscribers of site changes, special
  offers, etc.
• Content-Update Reminders
• E-mail reflecting user interest in a particular
  content area
• Broadcast Events
• Events can be broadcast from a website (webcast)
  that allows limited user control

• E-Commerce Dialogue
• Organizations and users trade e-mails regarding
  order placement, tracking and fulfillment
• Customer Service
• Organizations can provide customer service
  through trading e-mails or live online dialogue
• User Input
• User-generated content such a supplier ratings
  and user feedback to the site

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Connection

• ConnectionsAffiliatesRevenue
  SharingMarketingComplementary ProductsCustomer
  Acquisition
• Distracting?

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Dimensions of Connection
Sites connect with other businesses in the
following ways
Home Site Background
Outsourced Content
Links
Links can take the user completely outside of the
home site
Links can take the user to a new site, but the
home site is still in the background
Site content is derived from third parties
of Home Site Content
Pathway of Connection
KEY
?
Home site
?
Connected Sites
Does the site lead users to other sites, or does
it simply retrieve information from outside
sites?
What percentage of content originates from the
home site and how much is outsourced?
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Commerce

• Selection
• Pricing...Shipping
• The Shopping Cart
• Approval and Payment
• Can you avoid this experience? (browsing,
  selection, approving, paying?)
• Half.com Pre-order process...

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End Here