SiteModel Evaluation

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Site/Model Evaluation

• 1, 2 , 4
• Today Please peruse Nielsen Tahir
  bookHomepage Usability

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MAR 4933-002

• E-Commerce Marketing
• Fall 2002Tampa
• Doing Business On the Net
• Rich Gonzalez
• September 9, 2002 (Week 3 Monday)

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URLs

• ebay.com
• www.paypal.com
• www.carpoint.com

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Agenda September 9, 2002

• ebay.com Demo
• Market Opportunity
• Site/Model Evaluation
• Due For September 11

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For Today September 9

• Chapter 4Framing the Market Opportunity
• Purchase the WSJ Online 60 Day DemoDo not start
  it up yet

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WSJ Online

• A Good Resource
• 4.95 for 60 Day Trial
• 10 Points
• Do not start up service yet.
• To Get 10 Points, Please Send E-Mail
• I Obtained the WSJ Online 60 Day Demo (with
  your name)

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For September 11

• Analysis Paper 1
• Purchase the WSJ Online-- 60 Day DemoDo not
  start it up yetPlenty of copies at B N,
  Carrollwood

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Textbooks

• EXTRA CREDIT TEXT
• Blown to Bits How the New Economics of
  Information Transforms Strategy, Harvard
  Business School Press, Evans Wurster (2000).
  ISBN 087584877x
•  

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A Step Toward E-Commerce?
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BandwithConsumer Context

• Dialup
• ISDN
• Cable
• DSL
• T1
• 802.11b
• 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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Online Retailing Fact

• 65 of (virtual) shopping carts are abandoned
  before checkout
• Why?

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E-Commerce Is Important
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• Business is going to change more in the next 10
  years than it has in the past 50.
• William H. Gates III, 2000

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Marketing Concept

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

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Search Engines

• March 2002Jupiter Media Metrix
• 114 Million Internet Users At Home Or Work
• 80 Made a Search
• www.searchenginewatch.com/reports/mediametrix.html

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State of Online Retailing 5.0

• Report by BCG

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Online
Retailing Facts

• Compiled by Boston Consulting Group
• for shop.org (trade assoc. of online merchants)
• 2001 online revenue by North American retailers
  51.3 billion
• 2001 21 over 2000
• 2002 43 over 2001

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Online Sales

• 2001 Online sales 2.4 Of Total
• 2002 Online Sales 3.2

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A Trend? 802.11b
N
Library
COBA
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A Step Toward E-Commerce?
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Why Is E-Commerce Important?
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E-Commerce Marketing Is...

• There is a large amount of room for marketing
  efforts on the web and also a ton of business
  opportunities for those marketers that are web
  savvy.
• Student, MAR 4933-002

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E-Commerce Marketing Is...

• ...an efficient way to bring many more buyers
  and sellers together to create a global
  marketplace that otherwise would be impossible.
• Student, MAR 4333-521

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E-Commerce Marketing Is Important...

• E-commerce is important because it expands all
  markets by nearly infinite proportions.
• Student, MAR 4933-002

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3 Fundamental Business Shifts

• 1. Most transactionsB2C, B2B, C2C and G2C will
  become self-service digital transactions.
• 2. Customer service will become the primary
  value-added function in every business. Personal
  consultancy not routine services.
• 3. The pace of transactions and customer needs
  for customer service will force firms to adopt
  digital processes---for survival.

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RAF vs. FRA

• Ready, Aim, Fire!
• Fire, Ready, Aim

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The C2C Example

• Pierre Omidyar
• Pez Dispensers
• New Marketspace

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ebay.com Mission

• Help anyone trade practically anything on earth.

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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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Demo of ebay.com
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Table 11 Four Categories of E-Commerce

• Business originating from . . .

• Business

• Consumers

• B2B

• C2B

• Business

• And selling to . . .

• B2C

• C2C

• Consumers

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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 1998, CarPoint was driving 5 million in car
  sales a day

Make Go / No-Go Assessment
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Exhibit 16 A Flow Diagram of the Strategic
Responsibilities
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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 Wednesday ------Hard Date

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End Here