MAR 4933001

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MAR 4933-001

• E-Commerce Marketing
• Summer 2003
• E-Commerce and Distribution Of Content and
  Services
  
• Rich Gonzalez
• University of South Florida
• June 10, 2003

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URLs

• www.apple.com/itunes/
• www.panera.com

3
Grading Criteria

• Start Out With 100 Points
• Areas for ImprovementQ Quality of AnalysisT
  ThoroughnessF Format (Cover page, Headings,
  etc.)L Late (10 a day)
  

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Points Re Grading of WAP

• Use Descriptive Headingsi.e., Personalization,
  Continual Innovation, Convenience, etc.
  
• I think, My opinion is...
• Verbatim Text From Sources
• Sales of 14.87 B
• Revenues v. Sales v. Profits v. Earnings
• Grammar

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Agenda June 10, 2003

• Web Site Selection Continues
• Digital Ordering Redux
• Nielsen Tahir Guidelines Intro
• WiFi Marketing Implications
• Class Brainstorming Innovation Exercise
• Music Marketing Implications iTunes Music
  Store
  
• Due For June 12
• Fun Quiz (Participation)

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For Site/Model Evaluation

• Today and Thursday Please peruse Nielsen
  Tahir bookHomepage Usability
  
• Should Pick TodayRuth, Paul, Nick, Ryan,
  Michael, Jon, Camille

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Quiz
(For Class Participation Only)

• 1. A location (in a store, public building,
  hotel, etc.) which provides wireless service
  using Wi-Fi technology is called a __________
  
• 2. The patents on Wi-Fi technology will allow the
  owners to reap huge profits.a) Trueb) False

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Quiz (For Class Participation Only)

• 3. iTunes Music Store is an online service that
  competes for users of KaZaA and the former users
  of Napster. iTunes has been accused of illegal
  downloading activities.a) Trueb) False
• 4. The iTunes 4 jukebox software is very
  powerful, but it is difficult to use.a) Trueb)
  False

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Ontain Ordering System

• Waiting In Line Is Way Too Long
• Starbucks Express

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Why Wait For Your Morning Latté?

• Starbucks Express
• 60 Stores TestDenver Boulder, CO
• Register Online
• Charge 20Prepaid Balance
• Create Profile
• Order 1 tall half-decaf, extra hot, vanilla
  latte, blueberry scone.
  
• Order 2 small double shot cappuccino.

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Anyone Like Baseball?

• Dial Me Some Peanuts and Cracker Jacks, June 4,
  2003, Carl Bialik, wsj.com

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Cellphone Ordering

• Is There a Need?
• Buffalo Bisons (AAA Baseball)
• New Digital Services
• Note Baseball Is An Exciting Game!!!
• No, Its LONNNNGGGG!
• Purists Not Right!

Do we have the technology to INNOVATE new
services?
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Stadium Ordering Process

• 1. Register With Service
• 2. Authorize Credit Card
• 3. Get Password
• 4. Order By CellphoneItems (food,
  souvenirs)Specify SeatPassword
  
• 5. Wait 10 For Delivery

Are we LAZY or what?
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For Today June 10

• Wi-Fi Means Business, Heather Green, et al.,
  BusinessWeek, April 28, 2003
  
• Songs In the Key of Steve, David Leonard,
  Fortune, May 12, 2003
  
• Find One (1) Article at WSJ.com About Either
  Wi-Fi Or Apples iTunes Music Store
  Class Participation Item

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For June 12

• Chapter 4 E-Business Distribution Systems and
  SCM
  
• (Skim) Nielsen Tahir Guidelines
• Sun Microsystems Boots Up Blitz To Create Java
  Powered Loyalty, Especially With Cellphone
  Users, Don Clark, wsj.com, June 9, 2003

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Marketing Experience
Pre-Purchase
Post-Purchase
Purchase
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• We Stopped Right Here

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Marketing Concept

• Target Market
•  Customer Needs Wants
•  Coordinated activities
•  Profitability

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3 Fundamental Business Shifts
03

• 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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Economics of Things

• Seller Ceases To Own
• Replicate By Manufacture
• Deteriorate

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Economics of Information

• Sell, Yet Still Owned
• Replicated at cost of _____ ?
• Limit On Replication
• Never Wears Out

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Customer Orientation

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

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Revisit Wi-Fi
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BandwithConsumer Context

• Dialup
• ISDN
• Cable
• DSL
• T1
• 802.11b (Wi-Fi)
• 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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Wi-Fi

• Boingo Wireless
• www.boingo.com

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Wi-Fi

• Hot SpotsOffices, Cafes, Parks
• 4 Million Using Now, Worldwide
• Estimate 45 Million Business Laptops-- 2004
• Estimate 4.2 Million Households Have Wireless--
  2004
  
• Max Speed 11,000 K

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Wi-Fi Means Business

• Effects
• Players/Forces
• Implications
• Benefits

BusinessWeek, April 28, 2003, p86
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Why Worry With Wi-Fi?

• Ron Shaich...understands the importance of
  anticipating rather than simply satisfying
  customers desires. He also knows the value of
  learning from mistakes.
• Panera CEOs Recipe Learn From the Past,
  Anticipate Trends, Carol Hymowitz, wsj.com, June
  10, 2003
  

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Wi-Fi Players

• Intel Centrino
• Microsoft
• General Motors UPS
• Broadcom
• Cisco (Linksys)
• ABI
• Connexion by Boeing
• Verizon
• Boingo
• Cometa Networks (IBM ATT)
• Intersil
• Wi-Fi Nation

In Class Exercise
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Wi-Fi Implications

• Standards802.11b, a, g...
• Business Productivity
• Consumer Connectivity
• Information wants to be free.
• Information wants to be expensive.
• Subscription Models
• Chalking---Wi-Fi Nation

In Class Exercise
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Wi-Fi Benefits

• Speed of Data Transfer
• Flexibility for Biz Travelers
• 5,000 Free Hot Spots World Wide
• Freedom From Wires/Login
• Connectivity
• Information, Information, Information

In Class Exercise
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Wi-Fi Effects

• Knowledge Diffused
• Disruption
• Commercialization
• Profits

In Class Exercise
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Class ExerciseTwo Teams

• One Sheet of PaperNames Printed On One Side
• On Second Side Brainstorming/Creative Scenario
• For An E-Commerce Firm

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Class ExerciseTwo Teams

• Team Blue
• Wi-Fi Service and Use
• 1a. How Much To Charge?1b. Who Should Charge?
• 2. Three Kinds of Service/Info That Consumers
  Want
  
• 3. Who Gets Profits?

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Class ExerciseTwo Teams

• Team Red
• Wi-Fi Service and Use
• 1a. Hot Spots Are Free.1b. Why Free?
• 2. Three Kinds of Service/Info That Consumers
  Want
  
• 3. Who Gets Profits?