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MAR 4933001

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'Online Fund Raising Pays Off, May 23, 2003, wsj.com. Chapter 6 E-Commerce ' ... Used Cars Market --Biggest Seller. Testbed for new pricing efforts. In Class Exercise ... – PowerPoint PPT presentation

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Title: MAR 4933001


1
MAR 4933-001
  • E-Commerce Marketing
  • Summer 2003
  • E-Commerce and Critical Mass
  • Rich Gonzalez
  • University of South Florida
  • May 29, 2003

2
URLs
  • www.deanforamerica.com
  • http//www.boingo.com/
  • www.paypal.com

3
Agenda May 29, 2003
  • Hot Spots and WiFi
  • Critical Mass
  • WAP 1 PayPal Final Words
  • Chapter 6
  • Business Models- Market Opportunity
  • Value Propositions
  • Traf-O-Data
  • Due For June 3

4
For Site/Model Evaluation
  • Today and next 3 weeks Please peruse Nielsen
    Tahir bookHomepage Usability
  • Pick a , Enter Name on the Form

5
A Step Toward E-Commerce?
6
802.11b Update
  • Wi-Fi

7
BandwithConsumer Context
  • Dialup
  • ISDN
  • Cable
  • DSL
  • T1
  • 802.11b (Wi-Fi)
  • 3G
  • 56 K
  • 128 K
  • 150 to 300 K
  • 100 to 500 K
  • 1400 K
  • 300 to 500 K
  • 144 K

8
Wi-Fi
  • Boingo Wireless
  • www.boingo.com

9
Wi-Fi
  • Hot SpotsOffices, Cafes, Parks
  • 4 Million Using Now, Worldwide
  • Estimate 45 Million Business Laptops-- 2004
  • Estimate 4.2 Million Households Have Wireless--
    2004
  • Max Speed 11,000 K

10
WAP 1
  • Not Graded Yet

11
Grading Criteria
  • Start Out With 100 Points
  • Areas for ImprovementQ Quality of AnalysisT
    ThoroughnessF Format (Cover page, Headings,
    etc.)L Late (10 a day)

12
Customer Benefits
  • Speed
  • Low Cost
  • Convenient
  • Low Risk
  • Trust
  • Education
  • Availabilitydifferent currencies
  • Works also for B2B
  • Information of transactions
  • SPIFF

Completed, see 5/27 slides for rest of PayPal
Class Exercise
In Class Exercise
13
PayPal Final Notes
  • For Sending , For Personal Accounts.
  • Price 0.00 per transaction and
  • We deliver a product ideally suited for small
    businesses, online merchants, individuals and
    others currently underserved by traditional
    payment mechanisms.

14
Services
  • Relatively Intangible
  • Simultaneous Production/Consumption
  • Perishable
  • Non-Standardized

15
For June 3
  • Amazon CEO Calls Success of Free Shipping a
    Surprise, May 28, 2003, Paula L. Stepankowsky
  • The E-Biz Surprise, BusinessWeek, May 12, 2003
  • Weekly Analysis Paper 2

16
For Today May 29
  • Online Fund Raising Pays Off, May 23, 2003,
    wsj.com
  • Chapter 6 E-Commerce
  • eBay Redraws Retailings Map, Paul Demery,
    internet retailer, January 2003(Handout)

17
Online Fund Raising Pays Off
  • wsj.com, 5/23/03
  • Main Points?
  • www.deanforamerica.com
  • Innovator?
  • Benefits of Using the Net to Raise Funds
  • Public Adoption
  • Using the Net For Other Tasks

18
eBay Article Main Points
  • eBay Doing Great
  • Rev. Estimates Exceeded
  • uBid, Amazon, Yahoo.
  • Competition is Fleeing
  • Innovations Buy it now, categories, half.com,
    paypal, TV commercials
  • Anchor Stores
  • Used Cars Market --Biggest Seller
  • Testbed for new pricing efforts

In Class Exercise
19
eBay Redraws Retailings Map
  • Paul Demery, internet retailer, January 2003
  • Main Points?
  • Competitors?
  • uBid, Amazon, Yahoo
  • Performance?
  • Innovations?
  • Buy It Now eBay Stores, Brand
  • Critical Mass

20
Metcalfes Law
  • def values the utility of a network as the
    square of its users
  • Morse Code
  • Telephone system
  • Ethernet protocols
  • Internet protocols

21
Metcalfes Law
Net Utility
Nodes
22
Moores Law
of transistors
1965Double every 12 months 1975---Double every
24 months-----Sometimes 18 months
23
Another View of Law
YNI
Time

24
Killer App
  • def. a new good or service that establishes an
    entirely new category and, by being first,
    dominates, returning several hundred percent on
    the initial investment
  • Generative or destructive?

25
eBay Redraws Retailings Map
  • uBid realized that it will be virtually
    impossible for any site to replicate eBays
    critical mass of C2C activity.
  • uBid Sells Products It Owns

26
Weekly Analysis Paper 2Due June 3, 2003
  • Subject Name 3 ways that eBay changes
    commerce--And discuss.
  • Length 1.5 Pages
  • Due on June 3
  • (use bolded headings)1. Way 12. Way 23.
    Way 3
  • Quality of Analysisi.e., Mention Sales Numbers
    and Total Retail Sales (U.S.)

27
LEARNING OBJECTIVES
  • 1. Gain an understanding of the e-commerce
    process.
  • 2. Outline why a multichannel approach is
    beneficial for a retailer.
  • 3. Explain why newly formed pure-play Internet
    businesses may have a hard time gaining
    competitive advantages in the retail market.
  • 4. Compare and contrast how e-commerce is being
    used as a strategic tool by e-retailers and
    traditional retailers.

28
E-Commerce
  • E-commerce is the process of allowing Web based
    technologies to facilitate commerce or trade.
  • E-commerce can be retail, between an e-business
    and an end user, or it can be used for
    business-to-business transactions.

29
Webvan ModelWhere Are My Groceries?
  • Evaluate your grocery shopping. How often do you
    purchase the same products?
  • Trust a grocer to pick out your meats, fruits,
    and vegetables?
  • Which aspects of grocery shopping could be
    automated?
  • Evaluate the business model for a traditional
    grocery and determine where its competitive
    advantage lies.
  • What is the future of online grocery sales?

30
E-Retailing
  • Retail sales are shifting between various
    alternative sales channels.
  • Sales channels are the models that businesses use
    to sell to their customers. These could include
    brick and mortar outlets, catalogs, direct
    marketing, or e-commerce.
  • A destination site is a Web site that is designed
    to have the visitor return over and over.

31
E-Retailing
  • E-retailing will not necessarily result in an
    increase in overall retail sales instead,
    consumers are shifting purchases by adopting a
    multichannel approach and using alternative sales
    channels.

32
Figure 6.5 E-Commerce Personalization
Personalization
Customer Profiling and Suggestion Selling
One-Click Automated Ordering
Knowledge Database
E-Mail Marketing
Order Tracking
33
Figure 6.3 E-Business Model
Supply Chain
Extranet
34
Figure 6.4 E-Commerce Value Chain
  • E-Commerce Value Chain can give insight into the
    problems encountered by newly formed online-only
    e-commerce companies.

Promotion Need to develop customer base,
experience in targeting audience.
Distribution Channels Need locations, shipping
facilitators, payment systems, and return
policies and procedures.
Knowledge Management Need database on customer
and links to inventory and other business
processes.
Management Needs experience in field, knowledge
of process and industry, strong relationships
with employees, suppliers, and other
constituencies.
Supply Chain Develop and deploy inventory
systems, warehousing, extranets, etc.
Product and Pricing Strategies Develop
positioning strategy, image with market, etc.
Delivered Value to Customer
35
Traf-O-Meter 1971
  • Traffic Study Machines
  • in Seattle
  • Slow Manual System
  • Software Hardware
  • Success!Automatic Data Entry
  • Cheaper Faster Than Big Companies
  • Problem Govt. Funding Came In
  • Failure...

36
Microsoft
37
End Here
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