MAR 4333521

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MAR 4333-521

• E-Commerce Marketing
• Fall 2002Sarasota
• Business Models
• Rich Gonzalez
• September 21, 2002 (Week 4 Saturday)

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Site/Model Evaluation

• Today Please peruse Nielsen Tahir
  bookHomepage Usability

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URLs

• ebay.com
• www.paypal.com
• www.delmonte.com

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Agenda September 21, 2002

• Listserv
• PayPal demo/exercise
• Customer Orientation
• Business Models Preview
• Due For September 16
• Class for September 28--Cancelled

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For September 28

• Chapter 2
• Focus on overall knowledge of Internet i.e., Why
  is the Internet Growing?
  
• Comment on Listserv

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For October 5

• Reading to be assigned on the listserv this week.

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For Today-- September 21

• Chapter 4Framing the Market Opportunity
• Framework for Market Opportunity Exhibit 4-1
• Consumer Buying Process, Exhibit 4-3
• On What Customers Want. p.110
• Fashionably Late p.100
• Analysis Paper 1

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Analysis Paper 1

• Subject PayPal
• Criteria (use bolded headings)Business
  ModelTechnologyMissionTarget MarketCustomer
  Benefits
  
• Length 1.5 Pages -------125 points
• Due on Sep. 21 ------Hard Date

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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

• Subject PayPal
• Criteria (use bolded headings)Business
  ModelTechnologyMissionTarget MarketCustomer
  Benefits
  
• Length 1.5 Pages -------125 points
• Due on Saturday ------Hard Date

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The C2C Example

• Pierre Omidyar
• Pez Dispensers
• New Marketspace

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The B2C Example

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

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eBay CD Purchase

• A Winner!
• Whats Next

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Demo of PayPal.com
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Mission

• Enable any individual or business with an e-mail
  address to securely, conveniently and
  cost-effectively send and receive payments online.

In Class Exercise
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Technology

• WWW
• Email
• Credit Card Network
• PDNdeveloper network
• Privacy policy
• Encryption

• Bank system
• Databases

In Class Exercise
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Customer Benefits

• Easy to use
• Free (for personal)
• InstantSpeed
• Security
• Business alternative to credit card
• Wide accessibility incl. international

• Flexible payment optionscc, bank acct, balance
  in PP
  
• Reliable payment to seller
• 24/7 availability, WWW availability
• 5 bonus
• Trust
• No minimum balance
• Money market fund

In Class Exercise
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Customer Benefits

• Account/transaction info online
• Pay bills
• Send invoices
• Faster shipping of purchased product

• No bounced checks
• Recourse for errors cancel
• Eliminate errors

In Class Exercise
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Target Market

• Small businesses
• Anybody with an e-mail address
• Online shoppers
• People transferring funds to other people
• Gamblers

• Large business
• Non-profits
• Organizations
• Auction participants
• Offline shoppers
• College students
• Demanders of cash

In Class Exercise
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Biz Model

• Acceleration payment by eliminating barriers to
  payment
  
• Targeting many segments
• Global, real-time payment solution

• Discrimination in Pricing
• Growth28,000 new customers/day
• Base 17 million
• Global Standard
• Control money
• A bank that is not a bank

In Class Exercise
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Red Flags

• Harder to get payment back for bad transaction
• CitiGroup and other big dog competitors
• Technically, not responsible for failurelose

• Credit card companies might get allied with other
  payment services
  
• Illegal transaction

In Class Exercise
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Basic Components

• CriteriaBusiness ModelTechnologyMissionTarget
  MarketCustomer Benefits

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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. Technology
• 2. Information Usage
• 3. Promotion
• 4. Security/Trust
• 5. Pricing
• 6. User Friendly

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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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Business Model

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

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Marketing Concept

• What is it?

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Customer Orientation

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

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Customer Orientation

• MetricsCustomer AcquisitionMarket
  ShareCustomer SatisfactionCustomer Profitability

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Customer Satisfaction

• Definition?
• Performance Expectations CS

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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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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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End Here
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Feedback on eBay

• Community
• Self Policing
• Information
• Facilitation
• Trust