MAR 4933002

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MAR 4933-002

• E-Commerce Marketing
• Fall 2002Tampa
• Consumer Buying Process
• Rich Gonzalez
• September 16, 2002 (Week 4 Monday)

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Analysis Paper 1--Paypal

• 125 points max
• Minus points forFormatLateMissing
  HeadingThoroughnessLate
• Remember, there are 4 Papers, and the average is
  what will be recorded

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For Site/Model Evaluation

• 8 Melissa
• 10 Nicole
• 11 Danielle
• 12 Irina
• Today Please peruse Nielsen Tahir
  bookHomepage Usability

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URLs (Well probably Visit Today)

• ebay.com
• www.paypal.com
• amazon.com
• www.virgin.com
• www.carpoint.com

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Agenda September 16, 2002

• Graded AP 1--Returned
• Fashionably Late
• WSJ Online
• PayPal--finish
• Customer Buying
• Due For September 18

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For Today

• Review Framework for Market Opportunity
  Exhibit 4-1
• Review Consumer Buying Process, Exhibit 4-3
• Sound Byte, p.110, On What Customers Want.
• Fashionably Late p.100

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Fashionably Late

• Amazon.com vs. BN.com
• CDNow vs. Virgin Megastores Online
• We didnt want ...200 per...CA.
• Hotmail.com ---10 Million
• First Mover Or Late Mover???

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WSJ Online

• To Get 10 Points, Please Send E-MailI Obtained
  the WSJ Online 60 Day Demo (with your name)
• Demonstration in Class

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For September 18

• Start WSJ Online
• 1. Create a profile of topicsSpend 1 hour online
• 2. Have one article from WSJ that relates to
  e-commerce
• 3. Send title to the listserv with brief
  description

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Business Model

• Value Proposition
• What you give and what you get
• Value and Revenues

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Marketing Concept

• Do you know it yet?

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Customer Orientation

• A philosophy incorporating the marketing concept
  that emphasizes first identifying unmet needs,
  then satisfying them.
• Marketing Mantra
• Know your customer(s).

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Customer Satisfaction Definition

• Performance Expectations CS

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Customer Decision Process

• Origination (Recognize Problem)
• Information Gathering
• Evaluation
• Purchase Decision
• Postpurchase Results

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Customer Decision Process

• Watch the Traffic
• Polling
• Review Customer Service E-Mail
• Community

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Customer Decision Process

• Must Be Identified
• Can Be Shaped
• Lets go to Amazon.com

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Customer Decision Process

• Online BehaviorStill In Early Stages of Being
  Defined
• e.g., Napster
• e.g., Peer-to-Peer File Sharing

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Customer Behvior

• its not that people are lazy but that they are
  looking for convenience.

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Usability
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(No Transcript)
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PayPal

• What is it?
• Why is it important?
• Who are the customers?
• What are the effects?

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Analysis Paper 1

• Criteria Business ModelTechnologyMissionTar
  get MarketCustomer Benefits
• Pure Play

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The B2C Example

• An Intermediary
• A New IdeaInnovative
• IRACS
• A Bank?

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Mission

• Want to be the global standard for online
  payment.
• Maybe
• To become the only accepted (trusted) method for
  online payment.

In Class Exercise
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Technology

• Encryption
• E-mail
• Bank infrastructure
• Internet
• Credit card infrastructure

• Networks
• Databases
• Browsers
• Website

In Class Exercise
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Customer Benefits

• No stamps, envelopes
• Convenience
• Speed
• Security
• International Transacation
• Instant notification of receipt of pmt.
• Send invoices
• Pay bills

• 5 signup bonus
• Take credit card pmts without merchant account
• Increases circular flow of
• Faster shipment of purchased item
• No bounced checks
• Minimizes risk of error

In Class Exercise
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Target Market

• Anyone with
• Credit card
• Online access
• Businesses
• E-mail address
• Merchants, online
• Auction participants

• Clubs orgs.
• Computer savvy users
• Any Sellers
• Askers for Money
• 5 want
• College students, family

In Class Exercise
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Biz Model

• Secure way to make payments online FAST!
• Get fees from users
• Kind of like a bank
• Control money

• Value chain
• Growth 26,000 accounts a day

In Class Exercise
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Red Flags

• insert here

• insert here

In Class Exercise
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Basic Components To Analyze

• CriteriaBusiness ModelTechnologyMissionTarget
  MarketCustomer Benefits

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Four Categories of E-Commerce

• Business originating from . . .

• Business

• Consumers

• B2B

• C2B

• Business

• And selling to . . .

• B2C

• C2C

• Consumers

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Demo of PayPal.com

• Lets make a payment
• 905904055 through auction site
• 905928735

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ebay.com

• How do they do this?
• 1. Technology
• 2. Customer Orientation
• 3. Information Usage
• 4. Value
• 5. Community
• 6. Fun

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PayPal.com

• How do they do this?
• 1.
• 2.
• 3.
• 4.
• 5.

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Framework for MO Microsoft CarPoint Example

• MSN CarPoint identified an opportunity to
  leverage the Internet to deliver customer value
  in the car industry

Leverage the Internet to Improve the Consumer
Car-Buying Process

• The retail car-buying process was frustrating
  and inefficient
• Little information available to the consumer
• Bargaining with salesperson viewed as a hassle
• Long process overall

Car Buyers Are Dissatisfied With Current Retail
Car Buying Process

• MSN CarPoint selected two primary target
  segments for its service
• The intimidated by the process
• The information seekers

Shoppers Who Feel Intimidated by Sales People and
Look for More Efficient Way
Microsofts Software and Free Placement on All
Its Websites

• MSN CarPoint could leverage Microsofts
  expertise in software development, the Microsoft
  brand name and its multitude of online properties

• Competition was getting fierce with more and
  more online car services entering the market
• But the financial opportunity was large 66 of
  new car buyers used online services in 2000

How Big Is the Online Car-Buying Market? Who Are
CarPoints Main Competitors?

• In 1996 the first version of CarPoint was
  shipped
• By 2000, CarPoint was driving 15 million in car
  sales a day

Make Go / No-Go Assessment
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A Flow Diagram of the Strategic Responsibilities
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End Here