DEFINING YOUR MARKET

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Module 2
DEFINING YOUR MARKET
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MODULE 2 DEFINING YOUR MARKET
(MARKET ANALYSIS)
Market Analysis
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MODULE 2 DEFINING YOUR MARKET
(MARKET ANALYSIS)

• Considerations include -
• Customers Profile
• Competitors Analysis
• Geographical location
• Local Culture and Community

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MODULE 2 DEFINING YOUR MARKET
(MARKET ANALYSIS)
Customer Profile

• Age Group
• Professionals
• Existing Customers
• Niche market e.g. male/female/kids
• Internet Users/Businesses

• Geographical Location

• Competitors Analysis

• Local Culture and Community

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MODULE 2 DEFINING YOUR MARKET
(MARKET ANALYSIS)
Geographical Location

• E-Commerce is global
• Determine geographical coverage specifically for
  physical products
• South-East Asian Market is significantly small

• Customer Profile

• Competitors Analysis

• Local Culture and Community

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MODULE 2 DEFINING YOUR MARKET
(MARKET ANALYSIS)
Competitors Analysis

• E-commerce Model
• Market Advantage
• Market Offering
• Weaknesses

• Customer Profile

• Geographical Location

• Local Culture and Community

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MODULE 2 DEFINING YOUR MARKET
(MARKET ANALYSIS)
Local Culture Community

• E-commerce model must suit local culture and
  community
• Consider local internet users
• Different strategy for different markets

• Customer Profile

• Geographical Location

• Competitors Analysis

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Unique Selling Proposition
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MODULE 2 DEFINING YOUR MARKET
(UNIQUE SELLING PROPOSITION)
Unique Selling Proposition

• Uniqueness may consist of --
• Products
• Business Model

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MODULE 2 DEFINING YOUR MARKET
(UNIQUE SELLING PROPOSITION)
Top selling products on the Internet are -
Books
Computers
Flowers
Toys
Gifts
Electronics
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Electronic Commerce Business Models
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MODULE 2 DEFINING YOUR MARKET
(ELECTRONIC COMMERCE BUSINESS MODELS)
Overview

• Definition
• Electronic Commerce Business Models
• Business-to-Business Electronic Commerce
• Consumer-to-Business Electronic Commerce
• Business-to-Consumer Electronic Commerce
• New Business Models

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MODULE 2 DEFINING YOUR MARKET
(ELECTRONIC COMMERCE BUSINESS MODELS)
Definition of Business Model

• Description of the product, service and
• information flow
• Identifies potential benefits and sources of
• revenue from the various activities
• Work in conjunction with marketing strategy

Identify Need
Arrange Terms
Purchase
Use and Dispose
Buyer
Exchange
Information
Influence
MoneyGoods
Information
Arrange to provide
Arrange Terms
Fulfill Order
Support Customer
Seller
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MODULE 2 DEFINING YOUR MARKET
(ELECTRONIC COMMERCE BUSINESS MODELS)
Success Criteria of Business Models

• First phase of electronic commerce involves
• improving existing business processes
• Second phase of electronic commerce involves
• developing new business models
• Successful business models involves -
• Clearly defined customer, product and
• processes
• Access to technology to support processes
• Integration of internet-based information to
• other information
• Product or service fulfillment

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MODULE 2 DEFINING YOUR MARKET
(ELECTRONIC COMMERCE BUSINESS MODELS)
Electronic Commerce Business Models
B
C

B
B2B
B2C
C
C2B
C2C
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MODULE 2 DEFINING YOUR MARKET
(ELECTRONIC COMMERCE BUSINESS MODELS)
Business-to-Business Model

• Primarily electronic commerce between
• businesses
• First form of business-to-business was
  Electronic
• Data Interchange
• EDI defined as a way to electronically exchange
  
• business documents
• Internet-based EDI

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Business-to-Business Electronic Commerce
MODULE 2 DEFINING YOUR MARKET
(ELECTRONIC COMMERCE BUSINESS MODELS)

• Internet is used to transmit EDI documents in
• three basic ways -
• Company-to-Company
• Hub and Spokes
• EDI Service Bureau
• Business-to-business electronic commerce
• emphasis on
• Security
• Payment

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Consumer-to-Business Electronic Commerce
MODULE 2 DEFINING YOUR MARKET
(ELECTRONIC COMMERCE BUSINESS MODELS)

• New Business Model developed through the
  strength of Internet
• Precursor could be classified ads
• Buyer-led pricing
• Priceline.com
• Auto-By-Tel.com

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MODULE 2 DEFINING YOUR MARKET
(ELECTRONIC COMMERCE BUSINESS MODELS)
Consumer-to-Consumer Electronic Commerce

• Typically a model where consumers sells to
  consumer
• Similar to classified ads
• Provide mechanism for flexible pricing of
  products and services
• Ebay is the most prominent consumer-to-consumer
  business model implementation

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MODULE 2 DEFINING YOUR MARKET
(ELECTRONIC COMMERCE BUSINESS MODELS)
Business-to-Consumer Electronic Commerce

• The most popular form of implementation
• Equivalent to retail shops
• May have speciality shops as well as malls
• Business to consumer electronic commerce is fast
  rising and is expected to overtake
  business-to-business electronic commerce by 2005
• Provides a level playing field for technopreneurs

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MODULE 2 DEFINING YOUR MARKET
(ELECTRONIC COMMERCE BUSINESS MODELS)
Case Studies of Electronic Commerce Business
Models

• E-Shop
• E-Mall
• E-Auction
• Reverse E-Auction
• E-Procurement
• Third Party Marketplace
• Virtual Communities
• Market Exchange
• Value Chain Providers/Integrators
• Information Brokers

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MODULE 2 DEFINING YOUR MARKET
(ELECTRONIC COMMERCE BUSINESS MODELS)
Case Studies of Electronic Commerce Business
Models

• Metamediary
• Search Agents
• Incentive Marketing
• Expert Sites
• Utility Model
• Electronic Service Delivery
• Aggregated Buying

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Creating Competitive Opportunities
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MODULE 2 DEFINING YOUR MARKET
(CREATING COMPETITIVE OPPORTUNITIES)
Creating Competitive Opportunities

• Understanding the Customer
• Understand companys capabilities
• First Mover
• Understanding the Internet
• Anticipate new competitors

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