MAR 4933002

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MAR 4933-002

• E-Commerce Marketing
• Fall 2002Tampa
• Website/Business Model Evaluation Presentations
• Rich Gonzalez
• December 4, 2002 (Week 15 Wednesday)

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Grades for Evaluations

• Done by Monday, December 9

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URLs

• www.grainger.com
• www.salon.com

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• http//www.cnn.com/2002/TECH/internet/12/01/media.
  advertising.reut/index.html

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Agenda December 4, 2002

• Final Exam Details
• Quiz 3
• Grainger Site Visit

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Quiz 3

• 1. The advent of B2B saw some new businesses
  turning to the Internet as their primary or even
  sole sales channel.
•  
•  
• a. True
• b. False

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Quiz 3

• 2. The authors say that content management and
  case management are part of the _______ stage
  of the of the Evolution of B2B Capabilities.
•  
• a. Interact
• b. Transact
• c. CRP
• d. Broadcast
• e. CASE

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Quiz 3

• 3. Early sell-side B2B adopters created Web-based
  order processing to allow customers to place
  online orders for products. This B2B capability
  was initially modeled after the B2C capability to
  allow customers to search, find and order
  products online.
•  
• a. True
• b. False

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Quiz 3

• 4. From the BusinessWeek article AOL Is
  Relearning Its ABCs, we learned that AOL is
  basically repositioning itself by adding new
  services
•  
• a. because its subscriber revenue stream is up by
  25.
• b. such as telephone paging and call forwarding.
• c. that will compete with Sun Microsystems.
• d. because of new regulations favoring ISPs.
• e. because its advertising revenue stream is
  diminishing.

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Final Exam

• December 11, Wednesday
• 330 PM
• BSN 2201

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Chapters

• 4-Framing the Market Opportunity
• 5-Business Models
• 6-Customer Interface
• 7-Market Communications/Branding
• 8-Strategy Implementation
• 10-B2B Grows Up

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Objective

• 25-30 Questions
• Multiple Choice
• True False
• FIB
• Chapters, discussions, video, articles
• Make sure you check the list of articles on the
  website

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Subjective

• 4 Essay Questions
• Problem, analysis, description
• 1. Frame the situation, state assumptions,
  present opinions/answer
• Pick 2 of the 4 to answer
• No extra credit

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For Today December 4

• Chapter 10---B2B
• Quiz 3

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(No Transcript)
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That Was Last Slide
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Good or Bad?

• Innovations In Technology

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Good Or Bad Idea?

• Amazon starts letting visitors post reviews of
  books for all to read
• Draws fire from publishers and authors for its
  practicemight harm sales
• Now--public customer feedback is standard on most
  online stores
• Vital role in encouraging consumer spending

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Good Or Bad Idea?

• Amazon.com added a feature that allows people to
  shop for used books
• Under fire from writers and publishers groups---
  an "aggressive" tactic that threatens to eat into
  sales of new books and take royalty money out of
  the pockets ...
• http//news.cnet.com/news/0-1007-200-4293951.html?
  tagst.ne.ron.lthd

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Good Or Bad Idea?

• Amazon adds 1 Click
• Retail experts say that it will confuse,
  aggravate customers
• Customers adapt, like the quickness, those who
  dont like itdont use it

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Good Idea

• Amazon adds Richs Gold Box with special offers
  and TIMED duration
• Retail experts say that will antagonize customers
• Jury still out on this one...

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How Do You Know?

• "The reason you do it is because it's good for
  the customer, and anything that is good for the
  customer, in the long run, is good for authors
  and publishers," said Amazon spokesman Bill
  Curry.
• This is the same thing that Sam Walton said The
  customer is the only boss

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Innovation On-line Much Faster-- Key Issues

• Traditional off-line innovation took years and
  emphasized sustainable / gradual innovation
• Marketspace still offers room for incremental
  innovation, but emphasis shifts to more drastic
  innovations
• High information content of innovation objects
  increases speed of innovation from years to
  months or even shorter
• Short history of Marketspace means new
  collaborators / complementors become available
  frequently

Source Gundling, Ernest. 2000. The 3M Way to
Innovation. Tokyo Kodansha Int. Ltd. And New
York, New York Kodansha America, Inc.
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Marketspace

• The digital equivalent of the physical-world
  marketplace

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Challenges of Online Implementation
Essential challenges of On-line Implementation
Organization Driven
Customer Driven
Lower switching barriers increased importance
of good implementation
More complex linkages increased complexity of
implementation
More visibility of errors stronger competitive
implications of errors
More fluid organizational boundaries increased
complexity of implementation
More dynamic competitive environment increased
complexity of implementation
Customer Driven
Organization Driven
More Dynamic Environment
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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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Drucker

• There is only one valid definition of business
  purpose
• to create a customer.

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Drucker

• Because its purpose is to create a customer, the
  business enterprise has two--and only these
  two--basic functions
• marketing and innovation.

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(No Transcript)
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B2B Grows Up

• Evolution of B2B capabilities
• Broadcast
• Interact
• Transact
• Collaborate

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Evolution of B2B Capabilities

• Broadcast
• Interact
• Transact
• Collaborate

Basic Capabilities
Sophisticated Capabilities
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Evolution of B2B Capabilities

• Broadcast
• One-way static information on web pages
• Company contact information
• Financial information
• Basic product catalogs
• Interact
• Two-way communication
• e-mail
• Internet for customer support (CRM applications)

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Evolution of B2B Capabilities

• Transact
• Commercial transactions
• Order processing
• Collaborate
• Sales forecasts
• Point-of-sale (POS) information

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B2B Grows Up

• The categories of B2B
• B2B sell-side solutions
• Indirect e-Procurement
• Net marketplaces and Net exchanges

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B2B Sell-Side Solutions Activities
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The Evolved Sell-Side Solutions Activities
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Indirect e-Procurement Activities
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Indirect e-Procurement

• Indirect materials vs. direct materials
• e-Procurement
• MRO items
• Products or services or both?

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Indirect or MRO e-Procurement
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Grainger

• Site Visit

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Indirect e-Procurement -- Technology Components

• Catalog management
• Requisitioning
• Control and approval
• Specifying rules
• Transaction processing
• Creating a PO (purchase order)
• Receiving and exception processing
• Financials and payment processing

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End Here