MAR 4933001

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MAR 4933-001

• E-Commerce Marketing
• Summer 2003
• Value Strategies and Customer Orientation
• Rich Gonzalez
• University of South Florida
• June 24, 2003

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URLs

• www.dartek.com
• www.CeoExpress.com
• www.reflect.com
• www.nordstrom.com
• www.websitesthatsuck.com

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Agenda June 24, 2003

• WAP 4--Discussion
• Nielsen Guidelines
• Advertising Metrics/Decisions
• Hackers
• Customer Interface
• Chapter 5
• Due For June 26

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For Today June 24

• Chapter 5 E-Business Value Strategies
• Business Solutions At Last, a Way to Measure
  Ads, Michael Totty, wsj.com, June 16, 2003
• Hacker Alert, Riva Richmond, wsj.com, June 16,
  2003

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For June 26

• Handouts (2)
• Your Ad Could Be Here!, Andy Raskin, Business
  2.0, May 2003
• How to Make Money on the Net, Mark Athitakis,
  Business 2.0, May 2003
• Online Job Hunting Is Tough. Just Ask Vinnie.,
  Kris Maher, wsj.com, June 24, 2003

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Stewart Brand

• Information wants to be free.
• Information wants to be expensive.

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Advertising Measurements

• Half my advertising is wasted. I just dont know
  which half.
• Information About Information
• CB After Advertising
• Conversion Rate
• Mirrors vs. Bathroom Mirrors
• Cookies
• Relationship to Search-Based MarketingBuying
  Words

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Search-Based Marketing

• Paid Listings
• Paid Inclusion
• Search-Engine Optimization

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WebSideStory

• Business Model
• Application Service Provider Analytical
  Programs
• Subscription 6,000 /Month
• Test, Test, Test (www.dartek.com)

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Your Ad Could Be Here!

• Can You Tell How Many People Watch a
• TV Commercial
• Radio Commercial
• Web Commercial
• Billboard Commercial
• Handout
• Discuss Trends and Impacts
• Nielsen, Arbitron...

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Hacker Alert

• Security vs. Privacy
• Information Wants to Be ...
• .....Stolen
• California Legislation
• Mandatory Disclosure
• Why Dont Some Companies Want to Disclose?

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Decision to Disclose Hacking Company View

• Benefits
• Will Fix Security Hole
• Not Hiding Anything
• Inform Clients Better/Quicker

• Detriments
• Makes Co. Look Weak, Imcompetent
• Customer Trust Down
• Discourages Future Sales
• Shut Down Site
• Litigation
• Criminal Investigation
• Litigation Vulnerability
• Encourage More Hackers

In Class Exercise
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Customer Orientation

• A philosophy incorporating the marketing concept
  that emphasizes first identifying unmet needs,
  then satisfying them.

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Stewart Brand

• Information wants to be free.
• Information wants to be expensive.
• Information wants to be protected. (R.G.)

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3 Fundamental Business Shifts
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• 1. Most transactionsB2C, B2B, C2C and G2C are
  becoming self-service digital transactions.
• 2. Customer service is becoming the primary
  value-added function in every business.
  Personalization and customization are ways to do
  this.
• 3. Customer service requirements force firms to
  adopt digital processes---to meet and/or beat
  competition.

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Web Site/Business Model Evaluation Assignment

• 100 Points
• 50 Summary Paper
• 50 Presentation
• 1. Web Site Usability
• 2. Business Model Description/Critique
• Due July 1, 2003More Details To Follow

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Does the Firm Want To Be Contacted?

• Customer Service Level
• Ease of Contact
• Diversity of Contact
• Hiding

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Weekly Analysis Paper 4

• Using Your Selected Web Site For the Web Site/Biz
  Model Evaluation
• 1.5 Page Report, Cover Sheet
• Visit the Site, Act As Customer/VisitorDevelop
  a Question, Complaint, Suggestion, Communicate
  With the Firm, and Write Up a Report
• Due in class, June 24, 2003

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Does the Firm Want To Be Contacted?

• www.cdbaby.com9 Different Ways to
  contactFriendly
• www.theknot.comEasy, But Topic Dependent
• www.usf.edu

In Class Exercise
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Weekly Analysis Paper 4

• Site Details (Name, Dept., etc.)
• Question/Inquiry/Comment Objective
• Method of Communication, Date
• Description of Response
• Critique of CommunicationIncl., Is the Firm
  Customer-Oriented?

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WAP 4 Discussion
In Class Exercise
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WAP 4 Discussion
In Class Exercise
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Customer Interface 7

• 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)

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Marketing Experience
Pre-Purchase
Post-Purchase
Purchase
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Customer Interface
Technology-mediated interface
People-mediated interface
Face-to-face interaction
Screen-to-face interaction
There has to be an interface and it has to be
effective. People are pretty effective.
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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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Dimensions of Context
The context of a site has many different forms.
The two key context dimensions are function and
aesthetics
Look and Feel Of S2F
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Examples

• www.CeoExpress.com
• www.reflect.com
• www.nordstrom.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
• Market Dominant buy.commerx.com

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Community

• User to User Interactions
• www.ebay.com (Great)
• amazon.com (Not Yet)

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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 Firm Does It
• CustomizationThe Customer 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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We Stopped Right Here
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Connection

• ConnectionsAffiliatesRevenue
  SharingMarketingComplementary ProductsCustomer
  Acquisition
• Can Be Distracting

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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-orders

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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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Value Proposition/Cluster
The first step in the articulation of the
business model is clearly specifying the value
proposition or the value cluster for the
business

• Defining the value proposition or the value
  cluster requires answering the following
  questions
• Which target segments should the company focus
  on?
• What is the combination of customer benefits
  that is offered?
• What makes the firm and its partners better
  positioned to deliver the offering than anybody
  else?

Value Cluster
Marketspace Offering
Resource System
Financial Model
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End