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MAR 4933002

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Title: MAR 4933002


1
MAR 4933-002
  • E-Commerce Marketing
  • Fall 2002Tampa
  • Business Models II
  • Rich Gonzalez
  • October 7, 2002 (Week 7 Monday)

2
For Site/Model Evaluation
  • Today Please peruse Nielsen Tahir
    bookHomepage Usability
  • Pick a site if you wish and write it in on sign
    up sheet.

3
URLs (Well probably Visit Today)
  • www.djangos.com
  • http//zdnet.com.com/2100-1107-944735.html
  • http//www.metreon.com

4
Agenda October 7, 2002
  • Health Apps--BusinessWeek
  • Business ModelsChapter 5
  • Due For October 9

5
For Today October 7
  • Make Your PDA a Health Partner, p138,
    BusinessWeek, October 7, 2002
  • Chapter 5, Business Models

6
For October 9
  • Dont Clamp Down Too Hard, p140, BusinessWeek,
    October 14, 2002
  • Chapter 5, Business Models
  • Janis Ian Interview, July 18, 2002http//zdnet.co
    m.com/2100-1107-944735.html

7
What Is This Technology All About?
  • When Software Lets You Connect With Customers
    When and Where They Want...
  • The more ways you can connect with your
    customers, the more opportunities you have to
    build effective relationships with them.

8
Stewart Brand
  • Information wants to be free.
  • Information wants to be expensive.

9
BusinessWeek--Health
  • First, Operating SystemsOnly Two (Windows
    Palm)
  • What was the takeaway from this?
  • ApplicationsFeatures/Benefits/Price

10
BusinessWeek--Health
  • Freestyle Tracker
  • Active ECG
  • Workout Tracker
  • Profile-MD

11
What Else Can It Be?
  • Other Than Health Related?
  • iPod

12
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.

13
(No Transcript)
14
MetreonSan Francisco
  • A 350,000 square foot Sony entertainment center
    featuring fantasy, education and a unique
    shopping experience.
  • Visit a Sony IMAX theater, a 16-screen movie
    theater, exciting restaurants, Microsoft's first
    retail store, a Sony Style store showcasing the
    company's most advanced products, more unique
    shopping, and 3-D virtual arcade games.

15
Analysis Paper 3
  • Subject Pocket PC Phone Edition (p4 of
    BusinessWeek)
  • Context Business/Innovation Analysis
  • Criteria (use bolded headings)Value (Cluster)
    Proposition (not financial model yet)
    StandardsMarketing Opportunities
  • Use the WWW and search WSJ Online for at least
    one reference to the product/company/technology
    details.
  • Length 1.5 Pages, single-space, stapled cover
    sheet
  • Due Monday October 5

16
T-Mobile--Value Proposition
  • Not tied to a cord to access email.etc.
  • Two in one (pocket pc and phone)
  • Speaker phone
  • Access corporate networks
  • Almost all of MS Office application
  • Handwriting recognition
  • Full color high resolution
  • Fast wireless
  • Always On
  • PricingPromotions

In Class Exercise
17
T-Mobile--Standards
  • GSM/GPRS
  • Speed 56K/sec
  • Max 171 K/sec
  • Real World 117 K/sec
  • TDMA GSM 9.6 K/sec
  • Also, WiFi (802.11b)
  • 650 million locations nationwide
  • 32 MB RAM ROM
  • Standard MultiMedia Card

In Class Exercise
18
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

19
T-MobileMarketing Opps
  • Business Travelers need all kinds of info
  • Stay-home moms need all kinds of info
  • Consumers need all kinds of info
  • Students need all kinds of info
  • Doctors can use to get realtime info from
    patients and staff
  • Marketers can use to sent specific messages to
    people in geographic area

In Class Exercise
20
Last Wednesday
21
T-Mobile--Value Proposition
  • Not tied to a cord to access email.etc.
  • Two in one (pocket pc and phone)
  • Speaker phone
  • Access corporate networks
  • Almost all of MS Office application
  • Handwriting recognition
  • Full color high resolution
  • Fast wireless
  • Always On
  • PricingPromotions

In Class Exercise
22
T-MobileMarketing Opps
  • Business Travelers need all kinds of info
  • Stay-home moms need all kinds of info
  • Consumers need all kinds of info
  • Students need all kinds of info
  • Doctors can use to get realtime info from
    patients and staff
  • Marketers can use to sent specific messages to
    people in geographic area

In Class Exercise
23
Components of a Business Model
Developing a business model in the networked
economy requires four key choices on the part of
the senior management
Value Cluster
  • Specify the value proposition or the value
    cluster for the business

Marketspace Offering
  • Articulate the online product, service and
    information offer

Resource System
  • Define how the company needs to align its
    resources to deliver the value proposition
  • Define and select the most appropriate revenue
    model to pursue

Financial Model
24
PC Flowers and Gifts
  • October 2, 2002
  • www.pcflowers.com/

25
Marketplace Offering
  • 1. Scope of OfferingCategory Specific Dominance
    Single CategoryCross-Category Dominance Many
    related categories
  • 2. Identify the Customer Decision Process (CDP)
  • 3. Map the Offering to CDP

26
Customer Decision Process
The second step in the construction of the online
offering is the articulation of the customer
decision process for the various product
categories
Flowers Example
Problem Recognition
  • Need recognition, potentially triggered by a
    holiday, anniversary or everyday events
  • Search for ideas and offerings, including
  • Available online and offline stores
  • Gift ideas and recommendations
  • Advice on selection style and match

Prepurchase
Information Search
Evaluation of Alternatives
  • Evaluation of alternatives along a number of
    dimensions, such as price, appeal, availability,
    etc.

Purchase
Purchase Decision
  • Purchase decision
  • Message selection (medium and content)

Satisfaction
  • Post-sales support
  • Order tracking
  • Customer service

Postpurchase
Loyalty
  • Education on flowers and decoration
  • Post-sale perks

Disposal
27
Djangos
  • Need Recognition
  • Support
  • Facilitition
  • Post-Purchase

28
Djangos Shipped From
  • 1) Oak Park, IL
  • 2) Portland, OR
  • 3) San Diego, CA
  • 4) Sherman Oaks, CA

29
Egg Diagram for 1-800-Flowers.com
  • Gift reminder service
  • Holiday specials
  • Everyday celebrations suggestions
  • Special occasion suggestions

Ideas and Information
  • Care and handling
  • Do it yourself
  • Special events and educational workshops held at
    stores
  • Floral ideas
  • Garden ideas
  • Home ideas
  • Gift ideas
  • Gourmet ideas
  • Store locator
  • Recommendations by budget
  • Bestsellers

Flower / Gift Decision Process
  • Need Recognition

Product Offering
Gift Recommendations
  • Education on Flowers and Decoration
  • Search for Ideas and Offerings
  • Gift guru
  • Favorite gifts
  • Gift frequency
  • Gift impossible
  • Gift baskets
  • Corporate gift services

Post-Sale Support
  • Order receipt e-mail
  • eQA online customer service
  • FAQ
  • Customer service inquiry form
  • Post-Sale Support and Perks
  • Evaluation of Alternatives
  • Product price
  • Product picture
  • Product description
  • Delivery information
  • Delivery availability

Perks
  • Miles earned with flower purchases
  • Free gifts
  • Discounts at AOL BN.com with flower purchases
  • Member specials
  • Purchase Decision
  • Message Selection
  • Shopping basket
  • E-commerce transaction
  • Special shopping features
  • Delivery outside US
  • 1-800-lasfloras.com
  • Gizmo fully-animated greeting cards
  • Physical cards in gifts

30
End Here
  • Finish Chapter 5 next time
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