MAR 4933002

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MAR 4933-002

• E-Commerce Marketing
• Fall 2002Tampa
• BrandCommunication
• Rich Gonzalez
• October 30, 2002 (Week 10 Wednesday)

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Agenda October 30, 2002

• New Product/Services (2)
• Marketing and Operational Success
• Customer Interface--Finish
• Due For November 4

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URLs (Well probably Visit Today)

• wsj.com
• www.landsend.com

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For Today October 30

• WSJ Online Articles, E-Commerce
•    "What's a Check?," October 21, 2002   "Money
  Transfers," October 21, 2002  
  
• The Last Laugh Amazon.com, Chip Bayers,
  September, 2002, p86,Business 2.0(handout or
  archive at www.business2.com)

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Business 2.0 The Last LaughAmazon.com

• A REAL Profit In 4Q 01
• Marketing And Operational Success
• Important Revenue Stream Marketing Operational
  ModelTo Competitors?

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wsj.com October 25, 2002

• Amazon.com Loss NarrowsOn Revenue Surge in
  Period
  
• It is beginning to look like a green Christmas
  for Amazon.com Inc...
  
• Pricing Strategy...Cuts and Free Shipping...

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Amazon.com 2002 Revenues
Millions
27 Million Customers
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Amazon

• Stock Performance?
• Total Customers ?
• Marketing Costs ?
• StrategyGet Big First, Then Leverage
  SizeEmphasize Cash Flow

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Amazon

• Coopetition?

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Partners/Customers

• BordersTargetToys R UsVirginCircuit City

• Apparel For Xmas 2002GapNordstromLandsEnd

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Quotes To Compare?

• There is no reason for any individual to have a
  computer in their home.Ken Olsen 1976

• 40 of households will have 6 computers...connecte
  d to the Net.Jeff Bezos 2002
  

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"What's a Check?," October 21, 2002 wsj.com

• Do You Use Online Banking Services?
• Poll on WSJ
• Biggest Reaons?
• Familiarity, Trust, Convenience
• Transaction Costs For Banks?
• Trend?
• Problems?

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3 Fundamental Business Shifts

• 1. Most transactionsB2C, B2B, C2C and G2C will
  become self-service digital transactions.
  

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Elements of the Marketing Mix within an
Environmental Framework
Distribution
Product
Target Market
Price
Promotion
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"Money Transfers," October 21, 2002 wsj.com

• Paypal (and others)
• Environmental Effect
• Is It Too Easy To Move Around?
• Need To Adapt/Comply
• Why? Legal Liability, Brand Image
• Fortunate Used the CC/Bank Infrastructures
• Gambling Business?

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For November 4

• Chapter 7, Market Communications and Branding
• Quiz 1

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Suggested Sites II

• www.disney.com
• www.bbc.co.uk
• www.dillards.com
• www.cdnow.com
• www.gap.com
• www.ae.com
• www.shockwave.com

• www.oldnavy.com
• www.homedepot.com
• www.nissanusa.com
• www.usf.edu
• www.maxstudio.com
• www.thewirelesswaitress.com
• www.honda.com

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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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Last Time

• Jakob Nielsen
• Customer Interface7 Cs

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Ended HerePick Up
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Customer Interface

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

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Design Principles

• FitHow do the 7Cs support the business model?
• ReinforcementDegree of consistency between each
  of the Cs
  
• The idea is performance and synergy.

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The 7Cs of the Customer Interface
Context Sites layout and design
Content Text, pictures, sound and video that we
bpages contain

Commerce Sites capability to enable commercial
transactions

Community The ways sites enable user-to-user co
mmunication

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-use
r communication or two-way communication

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Begin Here
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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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Brand
A name, term, sign, symbol, design, or some
combination that identifies and informs about the
products of a firm.
Information pill.
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Brand Recognition
The stage at which the consumer knows of a brand,
but does not prefer it to competing brands.
How many knew about Palm as a brand, before this
course? How about Vertu? Nokia?
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Brand Recall
The consumer can, without prompting, retrieve the
brand name from memory.
Lots is spent on advertising to make this
happen?
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Brand Preference
The stage of brand acceptance at which the
consumer selects one brand over competing
offerings based on previous experience with it.
AOL vs. MSN, PayPal vs. C2it
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Brand Insistence
The stage of brand acceptance at which the
consumer refuses to accept alternatives and
searchers extensively for the desired good or
service.
Brand loyalty
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Brand Equity
The added value that a certain brand name gives
to a product. Generated by performance, social
image, value, trustworthiness of the brand.
What job website do you always consider when
publishing a resume online?
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Elements of Brand Equity

• Brand Awareness
• Brand Loyalty
• Quality
• Brand Affiliations