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MAR 6936-902

E-Commerce Marketing

Spring 2003—Downtown--MBADoing Business On the Net

Rich GonzalezJanuary 16, 2003 (Week 2)

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URLs lists.acomp.usf.edu my.usf.edu http://pages.ebay.com/community/aboutebay/overview/index.html www.hammertap.com

www.acomp.usf.edu/wireless.html www.searchenginewatch.com/reports/mediametrix.html

retailindustry.about.com/library/weekly/02/aa020612a.htm

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Agenda January 16, 2003 LISTERV Due For January 23 Nokia 9290—Class Exercise Survey Results Innovation and Technology Search Engines eBay Revisted Usability

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LISTSERV

xhttp://lists.acomp.usf.edu

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Web Site/Biz Model Evaluation 1. Nielsen Framework

2. Textbook Criteria

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WSJ Online A Good Resource $4.95 for 60 Day Trial 10 Points

Do not start up service yet.

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Textbooks

Required 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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Price Shopping On Books ebay.com www.half.com bibliofind.com ebs.allbookstores.com www.bigwords.com

Anyone find a good deal on the Blown To Bits?

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For Today: January 16 Chapter 1 Chapter 2--- SKIM (read: www)

Mini-Investigation of Nokia 9290

Purchase the WSJ Online 60 Day DemoDo not start it up yet

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For January 23 Chapter 8– The Market

Defer:Blown To Bits—p1-97

Weekly Analysis Paper # 1

Purchase the WSJ Online-- 60 Day Demo—Do not start it up yet

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Survey Results 6936-798 Age: 30.3 Tracks:

Finance, Marketing, MGMT

27% Full Time Students

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Survey Results—Best Website 6936-798

3-- yahoo.com, southwest.com 2– amazon.com 1—disney.com, travelocity.com,

usair.com, espn.com, ebay.com, google.com, patent & trade office…

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Survey Results—Worst Website 6936-798

www.priceline.com (2), msn.com (2) www.usf.edu

blackboardhotmail.comsprintpc.comebay.comspiritairlines.commiami.comwww.bn.comrealtor sites

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Survey Results--Internet Everybody is using the Internet Internet usage range is 3-35 hr/wk

Average = 16.3 hr/wk Is that a lot? U.S. Average = 6.5 hr/wk* FA 2002 MBA = 20.6 hr/wk SP 2003 MBA = 18.3 hr/wk (Tampa) Broadband at home = 53% U.S. Average = 22 % Broadband at home = 83% (Tampa)

* 12/29/02

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A Step Toward E-Commerce???

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Nokia 9290 Features/Functions/Other

Symbian OS New Interface Telephone Speakerphone 10 Hr talk time 9 standby Wireless Internet

Access

640x200 Active Matrixt

Hot Keys vs. touch screen

Memory cards$599 delv’d$449 with T-MobileWAV file ringing

In Class Exercise

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Nokia 9290 Features/Functions/Other

PC Compative Outlook Lotus Notes Word, Excel,

PowerPoint PDA Digital Network Qwerty keyboard

emailFaxDigital camera

connectivityConference calling14,400 bits/second14.4 Kb/secMP3

In Class Exercise

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Nokia 9290 Uses/Benefits

MobilityPortabiltyConvenient access

to all sorts of business communications/functionality

Another silent mode of communication

Multi-taskingSpace savingEntertainmentCost effectiveStatus/Prestige

In Class Exercise

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Bandwith:Consumer 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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A Step Toward E-Commerce?

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A Trend-- 802.11b

Library

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COBA www.acomp.usf.edu/wireless.html

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E-Commerce What is it? Why is it important?

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Marketing Concept Target Market  Customer Needs & Wants  Coordinated activities  Profitability

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3 Fundamental Business Shifts

1. Most transactions—B2C, 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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Search Engines March & October 2002—Jupiter Media

Metrix

114 Million Internet Users At Home Or Work

80% Made a Search

www.searchenginewatch.com/reports/mediametrix.html

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Search Engines--Popularity March 2002: 37.0% MSN 34.0% Yahoo! 28.9% Google 22.4% AOL 15.7% AskJeeves 9.2% LookSmart

Oct 2002: 29.2% Google 28.5% Yahoo! 28.1% MSN 19.7% AOL 10.3% AskJeeves 5.5% Netscape

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Search Engine—Avg. Minutes 36.4” AOL 25.7” Google 11.6” Earthlink 11.1” Infospace 10.0” AskJeeves 10.8” Yahoo! 8.6” MSN

October 2002

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Search Engines—Best Metric Millions of Hours

Mar 2002: 11.7 Google 6.5 Yahoo! 4.8 AskJeeves 4.0 MSN 2.9 AOL 1.9 AltaVista

Oct 2002: 16.1 Google 15.4 AOL 6.6 Yahoo! 5.2 MSN 2.2 AskJeeves 1.2 Infospace

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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) survey of 221 of 412 members 2001 online revenue by North American

retailers = $51.3 billion 2001 = 21 % over 2000 2002 = 43 % over 2001 (est.)

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Online Sales 2001 Online sales = 2.4 % Of Total

2002 Online Sales = 3.2 % (est.)

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E-Commerce: Drivers of Profitability Increased consumer spending online operational performance

improvements, Marketing efficiency Increased Repeat Online Buyers Tighter Expense Control

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Online Retailing FactsCustomer Acquisition Costs

2001 = $14

2000 = $29

1999 = $38

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Online Retailing FactsConversion Per Visit Percentages

2001 = 3.1

2000 = 2.2

1999 = 1.8

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So Online Sales Are Doing Well? Online Retailing Fact: 65% of (virtual) shopping carts are

abandoned before checkout

Why?

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E-Commerce

Consists of using electronic information-based systems to engage in transactions or commerce online.

Kleindl

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E-Commerce Marketing

… the entire process of using innovation to create a product and get it in the hands of someone who wants [it]...

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E-Commerce Marketing

… is also closing geographic boundaries and making market is accessible to anyone who has a computer...

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E-Commerce Marketing

…A lot of companies just use e-commerce as a new distribution channel. These…should have new marketing strategies for these e-commerce activities…

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E-Commerce Marketing

… vast opportunities with the web for companies to grow, network, amass many customers, and gain sales & market share rapidly...

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The Big Concepts Information

Amplification

Asynchronicity

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E-Commerce Marketing

… includes all aspects, or any grouping of aspects of the purchasing decision that are available on-line. Whether it is researching or pricing a product...It includes customer’s reactions to the site…a flat, visual interface.

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The Big Concepts Information

Amplification

Asynchronicity

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E-Commerce Marketing

… a strong ‘e-plan’ can serve as a differentiator for most businesses. ...enjoy the interactive & aesthetically pleasing sites that provide a good experience…

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E-Commerce Marketing

… is a vehicle which connects markets worldwide…enormous potential, but in a development stage. It makes so much accessible to so many people…

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Blown To Bits Reach

Richness

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Marketing Experience

Pre-Purchase

Purchase

Post-Purchase

Web Site

Advert.

Info:WOM

Web Site:Service

LoyaltyPrograms

Quality

WON

Web Site:Usability

Sales Promo.Assortment

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eBay How’d it start? What is eBay? Important Components:

MissionTarget MarketInformationFeedbackCommunityInventory

Demo

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eBay Mission and Market To help practically anyone trade

practically anything on earth. Market:

http://pages.ebay.com/community/aboutebay/overview/index.html

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Follow-On Innovations www.hammertap.com

Note: We did not get to go to this site, account time

Site Visit

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

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Weekly Analysis Paper # 1 Subject: PayPal Criteria:

Business ModelTechnologyMissionTarget Market

Length : 1.5 Pages Cover sheet

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For January 23 Chapter 8– The Market Blown To Bits—p1-97

Weekly Access Paper # 1

Purchase the WSJ Online-- 60 Day Demo—Do not start it up yet

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End Here