Date post: | 26-Mar-2015 |
Category: |
Documents |
Upload: | sydney-kilgore |
View: | 225 times |
Download: | 1 times |
EBUS 400
eCommerceeCommerce
Joseph Lewis Aguirre
eBusiness StrategyDefine eBusiness.Describe the strategy component of eBusiness. eBusiness IT Infrastructure & Supply ChainDescribe the IT infrastructure component of eBusiness.Examine the supply chain component of eBusiness. eBusiness MarketingExamine the marketing component of eBusiness. eBusiness Legal, Ethical, and Regulatory IssuesExamine the legal, Ethical, and regulatory component of eBusiness. eBusiness TrendsExamine eBusiness trends
OBJECTIVESOBJECTIVES
Joseph Lewis Aguirre
Human Computer InteractionHuman Computer Interaction Human Computer InteractionHuman Computer Interaction
Value of InformationValue of InformationTimeliness - is it available soon enough for it to be
meaningful?
Sufficiency - completeness. Is there adequate information for the purpose intended. Issues: sample size; time horizon
Level of Detail or Aggregation - are the data broken down into meaningful units
Redundancy - this can be a problem if there is too much redundancy or too little redundancy
Understandability • practicality
• simplicity
• minimization of perceptual errors
• difficulty with encoding
Value of InformationValue of Information
Freedom from Bias
Reliability - is information is correct and verifiability
Decision-Relevance - predictive power, significance
Cost-efficiency - need to consider the change in the decision behavior after obtaining the information minus the cost of obtaining it
Cost-effectiveness
Comparability
consistency of format
consistency of aggregation
consistency of fields
Value of InformationValue of Information
Quantifiability
Appropriateness of format , medium of display
ordering of the information
graphical vs. tabular display
Quantity: more is not better!
• Human Computer Interaction– Human-Computer Interface– Man-Machine Interface– Human Factors
• Must design systems so that they fit with users needs.– Particular people use particular systems to
perform particular tasks in a particular context.
HCIHCI
U/I ComponentsU/I Components
•Metaphors
•Navigation
•Mental models
•Interaction
•Appearance
•Usability
Usability Evaluation TechniquesUsability Evaluation Techniques
Applicability in Phase All All Design
Required Time Low Med High
Needed Users None None None
Required Evaluators 3+ 3+ 1-2
Required Equipment Low Low Low
Required Expertise Med High High
Intrusive No No No
Heuristic Cognitive Action Evaluation Walkthrough Analysis
INSPECTION METHOD
Usability Evaluation TechniquesUsability Evaluation Techniques
Applicability in Phase Design Final Test All
Required Time High Med Low
Needed Users 3+ 20+ 30+
Required Evaluators 1 1+ 1
Required Equipment High Med Low
Required Expertise Med High Low
Intrusive Yes Yes No
Thinking Field Question Aloud Observation
TEST METHODS
• Ken Olsen, (founder and CEO of Digital Equipment), confessed that he couldn’t figure out how to heat coffee in the company’s microwave
• P.O.E.T. is– Psychology Of Everyday Things– Book by Don Norman
• Contains– examples of poorly designed everyday objects– discussion of design processes
Common U/ICommon U/I
‘If I were placed in the cockpit of a modern day jet airliner my inability to perform gracefully and smoothly would neither surprise nor bother me. But I shouldn't have trouble with doors and switches, taps and cookers.’ (Norman, p. 2)
Common U/ICommon U/I
• ‘A friend’ told Don N. of the time ‘he’ got trapped in the doorway of a post office.
• The entrance was an imposing row of perhaps six glass swinging doors, followed immediately by a second, identical row.
• (That's a standard design — it helps reduce the airflow and maintain the indoor temperature of the building).
Common U/ICommon U/I
‘If I were placed in the cockpit of a modern day jet airliner my inability to perform gracefully and smoothly would neither surprise nor bother me. But I shouldn't have trouble with doors and switches, taps and cookers.’ (Norman, p. 2)
Common U/ICommon U/I
• ‘A friend’ told Don N. of the time ‘he’ got trapped in the doorway of a post office.
• The entrance was an imposing row of perhaps six glass swinging doors, followed immediately by a second, identical row.
• (That's a standard design — it helps reduce the airflow and maintain the indoor temperature of the building).
Common U/ICommon U/I
•Kitchen Timer
•Door traps
HCI - ExamplesHCI - Examples
•Fridge
•File Cabinet
HCI - ExamplesHCI - Examples
Birthdate:
Telephone Number:
4/21/81
510-642-5117
Birthdate:
Telephone Number:
/ /( -)
HCI ChoicesHCI Choices
HCI ChoicesHCI Choices
Joseph Lewis Aguirre
Marketing ConceptMarketing Concept Marketing ConceptMarketing Concept
4Ps + 2Is
Strategy
Domain Name
Viral Marketing
Stickiness Index
Affinity Groups
WS3: Marketing ConceptWS3: Marketing Concept
Stickiness IndexStickiness Index
AltaVista
Alltheweb
MSN
Infoseek
Hotbot
Fast
ProfitsCustomer Satisfaction
Company Effort
The Marketing ConceptThe Marketing Concept
eBusiness Planning FrameworkeBusiness Planning Framework
Environment Competition Objective Technology Customers
STRENGTHS, WEAKNESSES, OPPORTUNITIES, THREATS, TRENDS (SWOTT)
SEGMENTATION TARGETING POSITIONING
PRODUCT PRICE PROMOTION PRICE
Strategy: Growth MatrixStrategy: Growth Matrix
Market Develop.
Product Develop.
Market Penetration
Diversify.
PRESENT FUTURE
PRESENT
FUTURE
PRODUCT MARKET
Ansoff’s Product Market Matrix
“It’s all about VISION, because…
In the absence of Vision we default to Organization...
In the absence of Organization we default to Activity...
In the absence of Activity we default to Meetings...
In the absence of Meetings we default to reports…”
The Vision ThingThe Vision Thing
–CokeCoke: “A coke within an arm’s length of everyone on the planet”
–IntelIntel: “It’s what’s inside that counts”
–NikeNike: “Just Do It!”
–Disney: “Can it wear ears?”
Visions that workVisions that work
Leverage the Internet to Improve the Consumer Car-Buying Process
Leverage the Internet to Improve the Consumer Car-Buying Process
Car Buyers Are Dissatisfied With Current Retail Car-Buying Process
Car Buyers Are Dissatisfied With Current Retail Car-Buying Process
Shoppers Who Feel Intimidated by Sales People and Look for More Efficient Way Shoppers Who Feel Intimidated by Sales People and Look for More Efficient Way
Microsoft’s Software and Free Placement on All Its Websites
Microsoft’s Software and Free Placement on All Its Websites
How Big Is the Online Car-Buying Market? Who Are CarPoint’s Main Competitors?
How Big Is the Online Car-Buying Market? Who Are CarPoint’s Main Competitors?
Make “Go / No-Go” AssessmentMake “Go / No-Go” Assessment
• MSN CarPoint identified an opportunity to leverage the Internet to deliver customer value in the car industry
• The retail car-buying process was frustrating and inefficient:
• Little information available to the consumer• Bargaining with salesperson viewed as an hassle• Long process overall
• MSN CarPoint selected two primary target segments for its service:
• “The intimidated by the process”• “The information seekers”
• MSN CarPoint could leverage Microsoft’s expertise in software development, its brand name and its multitude of online properties
• Competition was getting fierce with more and more online car services entering the market…• But the financial opportunity was large: 66% of new car buyers were estimated to use online services in 2000
• In 1996, the first version of CarPoint was shipped• By 1998, CarPoint was driving $5 million in car sales a day
Framework for Market OpportunityFramework for Market Opportunity
Segmentation Type Description Examples of Variables
Geographics Divides market into geographical units
Country, region, city
Demographics Divides market on the basis of demographic values
Age, gender, income, education
Firmographics Divides market on the basis of company-specific variables
Number of employees, company size
Behavioral Divides market based on how customers actually buy and use the product
Website loyalty, prior purchases
Occasion (Situational) Divides market based on the situation that leads to a product need, purchase or use
Routine occasion, special occasion, part of day
Psychographics Divides market based on lifestyle and/or personality
Personality (laid-back, type A), lifestyle
Benefits Divides market based on benefits or qualities sought from the product
Convenience, economy, quality
SEGMENTATION OPTIONSSEGMENTATION OPTIONS
MeaningfulMeaningful
ActionableActionable
SubstantialSubstantial
MeasurableMeasurable
Customers must demonstrate needs, aspirations or behavioral patterns that are similar within a segment and different across segments
– A distinction between a price-sensitive and a quality-seeking segment is meaningful, since the two segments demonstrate distinguishable sets of needs
A company must be able to reach customers within each segment through effective and targeted marketing programs
– A customer segment consisting of customers with blue eyes is not actionable, since it is very hard to identify and reach only customers with blue eyes
Segments must be large and profitable enough to make the investment in serving them worthwhile
– MyCFO.com is targeted toward high-net-worth individuals, helping them manage their portfolios; even though the number of those individuals is small, the dollar amount managed is sizeable, thus constituting a substantial segment
Key characteristics of the segments (e.g., size and spending patterns) must be easy to measure
SEGMENTATION OBJECTIVESSEGMENTATION OBJECTIVES
a more balanced revenue mix
imaging & printing41%
access21%
enterprise19%services
19%
total: $47 billion
services18%
enterprise34%
total: $40 billion
imaging & printing22%
access33%
enterprise26%
services19%
total: $87 billion
access48%
hphp compaqcompaq combinedcombined
*All data based on estimated trailing four quarters. Source: SEC filings, press releases, and company estimates.
Carli’s Strategy: HP Product Mix BCCarli’s Strategy: HP Product Mix BC
a more balanced revenue mix
imaging & printing41%
access21%
enterprise19%services
19%
total: $47 billion
services18%
enterprise34%
total: $40 billion
imaging & printing22%
access33%
enterprise26%
services19%
total: $87 billion
access48%
hphp compaqcompaq combinedcombined
*All data based on estimated trailing four quarters. Source: SEC filings, press releases, and company estimates.
Post Carli’s : HP Beyond Ink SalesPost Carli’s : HP Beyond Ink Sales
DIGITAL CAMERA SEGMENTATIONDIGITAL CAMERA SEGMENTATION
Business Education Leisure Leisure Hobby or Special Interest
Collection Business Corporate Education
39
40+
39
40+
39
40+
Purchase Occasion
Reader
Self-Consumption Gift InstitutionalBy
Request
College Education
Moderate Education
Limited Education
Reference and Research Materials
How-To Information
Hobby or Special Interest
Entertainment
For Display
In-Depth Topical Insights and Discussion
How-To Information
RequiredReading
Comp-endium by Topic
Advice and
Recom-mend-ations
E-BOOKS SEGMENTATIONE-BOOKS SEGMENTATION
Promotional
Behavior
User Demographics
Very High High Moderate Limited None
39
40+
39
40+
39
40+
High Income
Moderate Income
Limited Income
Active Deal-Makers with Means
Active Frugal Collectors
Price-Sensitive
Active Frugal
Collectors
Passive Collectors
Ease
Convenience
Limited Accessibility or Options
History of Responding to Promotions
POTENTIAL eBAY CUSTOMERSPOTENTIAL eBAY CUSTOMERS
1.
2.
3.
4.
5.
6.
7.
A certain level of functionality must exist in order for a site to work; basic standards and expectations must be met
Relates to the individual’s unique perception of the encounter with the firm
More than just the economic transaction - the entire customer encounter experience includes both process and output measures of the shopping experience
Includes a customer’s response to multiple variables, from the tactical layout of the store/site to high-level interpretations of the meaning of the brand
To the extent that it is relevant, assessment of the customer experience needs to incorporate all five senses
Cognitive responses are thoughtful and evaluative in nature; emotional responses tend to capture moods, attitudes and feelings of the customer
Previous, separate experiences can affect a consumer’s reaction to various stimuli during a shopping experience
The Objective Element
The Perception Element
The Encounter Element
The Reactions-to-Stimuli Element
The Sensory Element
The Cognitive and Emotional Element
The Relative Element
Elements of Customer ExperienceElements of Customer Experience
If a Firm Gets This Right … This Is What the Customer
Experiences
Stage One: Functionality Design and information architecture
Deep understanding of customer behavior
Platform independence
Efficient transactions
Site is easy to use
Quick downloads
Intuitive navigation
Site reliability
Stage Two: Intimacy Warehousing and mining
Tailoring of pages and offerings
Overlay human interaction
Integrated data
Consistent performance over time
Constant innovation and upgrading (incremental or significant)
Personalization
Increasing trust
Repeated experiences of exceptional value
A sense of “being in the know”
Consistent experiences
Significant benefits relative to other offerings
Stage Three: Evangelism Supports evangelists
Acknowledgment of evangelists Desire to make messages to
the market
Community benefits
Stages of Customer ExperienceStages of Customer Experience
Product• Physical
Goods• Service• Features• Quality• Accessories• Installation• Warranty• Product Lines• Packaging• Branding
Place• Objectives• Channels• Logistics
Promotion• Objectives• Blend• Sales People• Advertising• Sales
Promotion• Publicity
Price• Objectives• Flexibility• Geographic
Terms• Discounts• Sales
Promotion• Publicity
Strategy Decision AreasStrategy Decision Areas
Element
Money
Growth
Concentration
Literacy
Focus on
Relative Buying Power
Rate of Growth
Population Density
Communication concerns
Potential MarketsPotential Markets
Branding
PLACE PRODUCT
Individual
PROMOTION PRICE
Interactivity
II & The Product MixII & The Product Mix
Banner Ad(to promote awareness)
Banner Ad(to promote awareness)
Personalized Website
Permission e-mails
Individualized offerings
Personalized Website
Permission e-mails
Individualized offerings
Website Website
AwarenessAwareness CommitmentCommitmentExploration Exploration
User clicks on bannerto find out more
User can set up the webpageaccording to personal preferences,register for e-mails, give feedback,or make a purchase
The II Through StagesThe II Through Stages
One Seamless Experience
Cell 4Cell 4 Cell 2Cell 2
Cell 3Cell 3 Cell 1Cell 1
Lo
cati
on
of
Re
ven
ue
Str
ea
m
Bric
ks-a
nd-
Mor
tar
Onl
i ne
Marketing Resource Allocation
Offline Online
Impact of Internet MarketingImpact of Internet Marketing
– ““Blackbeard”Blackbeard”– ““Nazi”Nazi”– VolkswagenVolkswagen– BelieversBelievers– Infidels/GentilesInfidels/Gentiles– IBMIBM– Amazon.comAmazon.com– Andersen ConsultingAndersen Consulting– Route 66Route 66– Tom ClancyTom Clancy– Mark TwainMark Twain– Albert EinsteinAlbert Einstein
– The Kennedy’sThe Kennedy’s
– Al CaponeAl Capone
– Ted TurnerTed Turner
– CNNCNN
– NickelodeonNickelodeon
– MarlboroMarlboro
– Sports Illustrated Sports Illustrated Swimsuit EditionSwimsuit Edition
– The New York TimesThe New York Times
– ““Them”Them”
– ““The White House”The White House”
Brands through historyBrands through history
– BrandsBrands• MercedesMercedes
• The Beach BoysThe Beach Boys
• KodakKodak
• DisneyDisney
• Intel (Today)Intel (Today)
• VirginVirgin
– NOT BrandsNOT Brands• General MotorsGeneral Motors
• The BeatlesThe Beatles
• XeroxXerox
• Time-WarnerTime-Warner
• Berkshire HathawayBerkshire Hathaway
Brands through historyBrands through history
– 67% - There is no risk associated with buying 67% - There is no risk associated with buying brands with which you are not familiarbrands with which you are not familiar
• Lack of substantive differentiationLack of substantive differentiation
– 72% - A well-known brand is an important 72% - A well-known brand is an important factor on making buying decisionsfactor on making buying decisions
• ““Selection shorthand”Selection shorthand”
Why BrandWhy Brand
– Brand as Energy:Brand as Energy:• Amazon.comAmazon.com
– Brand as SecurityBrand as Security• Stew Leonard’sStew Leonard’s
– Brand as Quality/Choice EditorBrand as Quality/Choice Editor• NordstromNordstrom
– Anti-brandAnti-brand• AudiAudi
– Evolving: Brand as known and reliable sub-Evolving: Brand as known and reliable sub-contractorcontractor
• IT OpportunityIT Opportunity
Brand TypesBrand Types
Brand matters because We all live in a Plan “B” Universe
– Limited Resources
• Time
– Unlimited Options
• Money
• Energy
– Limited Consequences
Brand DriversBrand Drivers
• Brand determines the Purchase Ownership Association (POA) Factor– Terms of Engagement for 3 possible types of
relationships• Purchase
• Ownership
• Association
– Your Brand carves out the space you ‘own’
Brand POA FactorBrand POA Factor
Purchase Ownership Association
Normal (As bad as expected)
Neutral
Neutral
Neutral
Enjoyable (Works as it SHOULD!)
I ntrigued
I ntrigued
I ntrigued
Special (better than expected)
Expectant
Expectant
Expectant
Rewarding
(measurably/tangibly advantaged)
Committed
Committed
Committed
Brand POA FactorBrand POA Factor
Purchase Ownership Association
Normal (As bad as expected)
BJ ’s Club
Warehouse
Enjoyable (Works as it SHOULD!)
Home Depot
Special (better than expected)
Nordstrom
Rewarding
(measurably/tangibly advantaged)
Any airline’s
Mileage Rewards
Brand POA FactorBrand POA Factor
Purchase Ownership Association
Normal (As bad as expected)
McDonald’s
Enjoyable (Works as it SHOULD!)
Coca- Cola
Special (better than expected)
Outback
Steakhouse
Rewarding
(measurably/ tangibly advantaged)
United
Premiere Flyer
Brand POA FactorBrand POA Factor
Purchase Ownership Association
Normal (As bad as expected)
Planet Hollywood
Enjoyable (Works as it SHOULD!)
Levi’s
Special (better than expected)
Hilfiger
Rewarding
(measurably/ tangibly advantaged)
United Red Carpet Club
Brand POA FactorBrand POA Factor
• Every company has an ‘identity’ – whether it Every company has an ‘identity’ – whether it chooses to control that image, or notchooses to control that image, or not
• A Good Brand is an identify which isA Good Brand is an identify which is– Recognition “shorthand”Recognition “shorthand”– Consciously developedConsciously developed– PurposefulPurposeful– CultivatedCultivated
• A Bad BrandA Bad Brand– Is ‘what happens’ to youIs ‘what happens’ to you– The discrepancy between promise and deliveryThe discrepancy between promise and delivery
Brand TruismsBrand Truisms
• A Brand is the difference between inherent A Brand is the difference between inherent worth and perceived valueworth and perceived value
• A Brand is a Unique Selling Proposition A Brand is a Unique Selling Proposition which translates intowhich translates into– Marketing AdvantageMarketing Advantage– Profit MarginProfit Margin– Higher MultiplesHigher Multiples
Brand TruismsBrand Truisms
• A Brand hasA Brand has– An “aura”An “aura”– IdentityIdentity– PersonalityPersonality– Customer-’stickiness’Customer-’stickiness’– Positive inertiaPositive inertia
Brand TruismsBrand Truisms
For Example:For Example:
Brand ExamplesBrand Examples
Chicken Chicken PoopPoop
Haul it Away, Please!Haul it Away, Please!
What is a brand worth?What is a brand worth?
Premium Premium Natural Natural
FertilizerFertilizer
$ 10.00 per drum$ 10.00 per drum
What is a brand worth?What is a brand worth?
Agricultural Agricultural ChemicalsChemicals
$25.00/c.wt.$25.00/c.wt.
What is a brand worth?What is a brand worth?
Better Living through Better Living through ChemistryChemistry
$50/bag$50/bag
DUPONTDUPONT
What is a brand worth?What is a brand worth?
TheThe Business Business
CustomersCustomers(number/type)(number/type)
Fees/PricesFees/Prices(revenue)(revenue)
Defines &
Drives
Business Value
The BrandThe Brand
CustomersCustomers(number/type)(number/type)
Potential Markets Potential Markets ServedServed
(size/growth)(size/growth)
Brand Share Brand Share PotentialPotential
Brand ContributionBrand ContributionBrand Value
The Business and the Brand are Intertwined
Today’s business is the DNA of the Brand and its potential to create value via strategic decisions, such as diversification
Measuring Brand ValueMeasuring Brand Value
Brand EquityBrand Equity
Brand Loyalty Brand Awareness Perceived Quality Brand Associations Other Assets
Reduced Marketing
CostsTrade
LeverageAttracting New
CustomersTime to
Respond to Competitive
Threats
Anchor to Which Other Associations Can be Attached
Familiarity - Liking
Signal of Substance /
Commitment
Brand to be Considered
Reason-to-Buy
Differentiation / Position
Price
Channel Member Interest
Extensions
Help Process / Retrieve Information
Differentiate / Position
Reason-to-Buy
Create Positive Attitudes / Feelings
Extensions
Competitive Advantage
Provides Value To Customer By Enhancing Provides Value To Customer By Enhancing Customer’s:Customer’s:
Interpretation / Processing of InfoInterpretation / Processing of InfoConfidence in the Purchase DecisionConfidence in the Purchase DecisionUse SatisfactionUse Satisfaction
Provides Value To Firm By Enhancing :Efficiency & Effectiveness of Marketing ProgramsPrice / MarginsBrand ExtensionsCompetitive Advantage
Brand Equity Brand Equity
BrandBrandAwarenessAwareness
UniqueUniqueSellingSelling
PropositionProposition
BrandBrandDNADNA
BrandBrandExperienceExperience
Brand Awareness is Only One element of Brand Equity
Measuring Brand ValueMeasuring Brand Value
Demand Curve Shift With Brand Equity
VolumeEffect
Q2
Q1
P2P1 Price
Brand Equity
Leverage
Quantity
Price or Margin Effect
Brand Equity is the Premium that Consumers Pay for Your Products and Services...
…And, the Premium that Investors Pay for Your Company.
Measuring Brand Value- Brand Equity
Measuring Brand Value- Brand Equity
How Brand Equity Impacts PE
Financial-Centric CompaniesFinancial-Centric Companies CompanyCompany PEPE MktCapMktCap1. Bergen Brunswig1. Bergen Brunswig 1414 $2.1B $2.1B2. Ingersol Rand2. Ingersol Rand 19.719.7 10.9B 10.9B3. Dow Chemical3. Dow Chemical 21.521.5 27.6B 27.6B4. Conectiv4. Conectiv 11.1211.12 $2.0B $2.0B
Brand-Centric CompaniesBrand-Centric Companies CompanyCompany PEPE MktCapMktCap1. P&G1. P&G 35.235.2 $133B$133B2. Gillette2. Gillette 39.239.2 50B 50B3. Coca Cola3. Coca Cola 47.947.9 146B 146B4. Disney4. Disney 40.740.7 $61.4B$61.4B
Hot Market-Centric CompaniesHot Market-Centric Companies CompanyCompany PEPE MktCapMktCap1. AOL1. AOL 253253 $109.4B$109.4B2. Yahoo2. Yahoo 311311 $39.6B $39.6B3. Excite3. Excite 491491 $7.3B $7.3B4. Amazon4. Amazon -119-119 $20.2B $20.2B
The Reason Brand-Centric Companies have (traditionally) higher PE’s stems from premiums in pricing and growth potential
Measuring Brand Value- Brand Equity Vs PE
Measuring Brand Value- Brand Equity Vs PE
Brand-Centric CompaniesBrand-Centric Companies CompanyCompany U.S. RevenueU.S. Revenue U.S. Ad SpendingU.S. Ad Spending Ad $ as % of SalesAd $ as % of Sales
1. P&G1. P&G $18,460M$18,460M $2,743M$2,743M 14.9 14.92. Gillette2. Gillette 3,682M 3,682M 578M 578M 15.7 15.73. Coca Cola3. Coca Cola 6,443M 6,443M 710M 710M 11.0 11.0
How Much Advertising is Enough?
AdvertisingAdvertising
ComparablesComparables
ConectivConectiv .6%.6%
SBCSBC 1.3%1.3%
BellSouthBellSouth 1.5%1.5%
AT&TAT&T 1.5%1.5%
Bell A.Bell A. 1.9%1.9%
MCIMCI 3.9%3.9%
SprintSprint 3.5%3.5%
Brand $$Brand $$
KodakKodak 5.7%5.7%
CendantCendant 5.4%5.4%
Sherwin-W.Sherwin-W. 6.3%6.3%
StarwoodStarwood 23.4%23.4%
Advertising SpendingAdvertising Spending
StandardsStandards
DisneyDisney 7.0%7.0%
AmexAmex 3.1%3.1%
GEGE .46%.46%
Advertising SpendingAdvertising Spending
– Brand AwarenessBrand Awareness• People KNOW who you arePeople KNOW who you are
– Brand EquityBrand Equity• People pay PremiumPeople pay Premium
– To do business with youTo do business with you– To own youTo own you
Building a Brand Vs Brand EquityBuilding a Brand Vs Brand Equity
–Awareness Awareness
–DNADNA
–ExperienceExperience
Brand Equity DimensionsBrand Equity Dimensions
– VisionVision
– CEO as ‘Keeper of the Marque’CEO as ‘Keeper of the Marque’
– ConsistencyConsistency
– CommitmentCommitment
– PatiencePatience
Building Strong BrandsBuilding Strong Brands
• Bases for VisionBases for Vision– PromotabilityPromotability– Operational ExcellenceOperational Excellence– Product ExcellenceProduct Excellence– USPUSP– Powerful PotentialPowerful Potential
Building Strong BrandsBuilding Strong Brands
• If it doesn’t ‘line up’ – it doesn’t add upIf it doesn’t ‘line up’ – it doesn’t add up– What you SAY to the worldWhat you SAY to the world– What you DO in the worldWhat you DO in the world– What you DO insideWhat you DO inside
Building Strong BrandsBuilding Strong Brands
STATE
Rejection
Non Recognitions
Recognition
Preference
Insistence
STRATEGY
Change Position
Increase Awareness
Continue Education
Maintain Availability
Develop High Brand Equity
Branding StrategyBranding Strategy
• “E-branding is more important [than e-commerce]. And it must come first. Because few people will buy your stuff – online or off – unless you are top-of-mind.” – Annette Hamilton, Executive Producer, ZDNet
• “Brand is the price of entry [to the Internet], not the winning strategy.” – Dylan Tweney, infoNet
• “By the time your potential customers log on, they already know what they’re looking for, and they often know from whom they want to buy it. … They’re just not listening to branding messages anymore.” – Michael Fischler, Principal, The Pubs Group
Online BrandingOnline Branding
Selected Internet BrandsSelected Internet Brands
Branding
Online Branding and Selling Online
Intermediary/ Vertical Portal
e-Commerce
Business-to-
Consumer Ragu
American Airlines
Yahoo! CDNow
Business-to-
Business Boeing Cisco Systems Avnet NexPrise
Established as Traditional Brand
Established as Online Brand
Source: PricewaterhouseCoopers Moneytree Report 2000.
Successful Online Branding ExamplesSuccessful Online Branding Examples
• “Brands stand as comfort anchors in the sea of confusion, fear, and doubt. In dynamic markets, strong brands have more value than ever, precisely because of the speed with which these markets move.” – Chuck Pettis, Technobranding
• “It took more than 50 years for Coca-Cola to become a worldwide market leader, but only five years for online search engine Yahoo to gain market dominance. The role of the brand has changed dramatically and has created a vacuum between offline and online brands.” – Mark Lindstrom, Executive Director, ZIVO
• “A company’s website is the brand. It’s the hub of consumer experience, the place where all aspects of a company, from its annual report to its products to its support, intersect. It’s the company in a nutshell, all there in a way that just is not possible in the analog world.” – Sean Carton, Carton Donofrio Interactive
Online BrandingOnline Branding
Product, Price, Community, Communication and Distribution Programs
Wraparounds
Core Product/ Core Product/ ServiceService
Source: Keller (1996), Aaker (1996), Strategic Market Research Group, Marketspace Analysis
. . . provides positive consumer responses . . .A good brand . . .
Customer Benefits
Confidence
Loyalty
Satisfaction
Customer Benefits
Confidence
Loyalty
Satisfaction
Firm Benefits
Reduced marketing costs
Increased margins
Opportunity for brand extensions
Firm Benefits
Reduced marketing costs
Increased margins
Opportunity for brand extensions
. . . and benefits both target customers and firm
Brand Awareness
Depth
Breadth
Brand Awareness
Depth
Breadth
Brand Associations
Strength– Relevant– Consistent
Valence
Uniqueness– Memorable– Distinctive
Brand Associations
Strength– Relevant– Consistent
Valence
Uniqueness– Memorable– Distinctive
Brand Equity Conceptual ModelBrand Equity Conceptual Model
A Strong Brand Essential Strength of Brand
Is Not That Important
A strong brand name provides a clear presence in the market
Strong brands attract customers
Strong brands carry positive associations with consumers
Clear brands are associated with higher conversion rates
All current online “winners” have strong brands
Alliances — not strong brands — are the key to winning in the marketplace
Readily available third-party evaluators will increasingly influence online consumption
Speed to market is more important than branding
The trend toward customization is leading to an environment where the meaning of a “mega-brand” is no longer relevant
Current online winners may have strong brands, but so do a number of “big losers”
Value of Online BrandsValue of Online Brands
Clearly Define the Target AudienceClearly Define the Target AudienceStep 1
Step 3
Step 2
Step 4
Step 5
Step 6
Step 7
Understand the Target CustomerUnderstand the Target Customer
Understand the CompetitionUnderstand the Competition
Design Compelling Brand IntentDesign Compelling Brand Intent
Identify Key Leverage Points in Customer Experience
Identify Key Leverage Points in Customer Experience
Execute the Branding StrategyExecute the Branding Strategy
Establish Feedback SystemsEstablish Feedback Systems
Branding ProcessBranding Process
Branding Element
Offline Online
1. Clearly Define the Brand Audience
Limited to manageable number of segments to prevent inconsistent messaging
Could include larger number of segments based on values or interests rather than demographics
2. Understand the Customer
Requires thorough understanding of environment, desired purchase and usage experience
Requires thorough understanding of desired purchase and usage experience in both the offline and online environment
3. Understand the Competition
Requires monitoring of competitor advertisements and activities
Competitor advertisements and some activities can be directly observed online
4. Design Compelling Brand Intent
Brand intent (desired positioning) designed to address the needs and beliefs of target segments
Greater opportunity for customization of key messages
5. Identify Key Leverage Points in Customer Experience
Buying process is typically a simplified representation of customer segment behavior with static leverage points
Buying process tends to be more dynamic and flexible
6. Execute the Branding Strategy
Strong, positive brands are built up over time
Image reinforced through variety of offline media
Marketing strategy includes plan for sequenced growth and adjustment of brand based on changing
customer needs
Building brand awareness requires significant investment
Building brand loyalty takes time offline, especially because early customer receptivity to brands is difficult to assess (and usually involves market research)
Online interactions bring in added concerns of security and privacy
Limited familiarity with online brands makes fostering trust more difficult
With the ability to customize, one customer’s brand image may be different from another customer’s brand image
Customization for multiple segments and opportunity for early recognition of the changing customer requires a corresponding tailoring of brand intent
Building brand awareness requires significant investment, especially for those competitors who are not first in their category online
Brands have the potential to generate loyalty more quickly, especially if customers are targeted effectively
7. Establish Feedback Systems
Collecting and analyzing customer feedback is more time-consuming
Sophisticated tools exist for tracking online; allow for anonymous, interactive, quick feedback
Branding Type ComparisonBranding Type Comparison
• How do companies determine level of Ad or PR SpendingHow do companies determine level of Ad or PR Spending
– Industry StandardsIndustry Standards– Goal StandardsGoal Standards
• Higher if you are growing or protecting brandHigher if you are growing or protecting brand
• Lower if you are in maintenance modeLower if you are in maintenance mode
– Situational StandardsSituational Standards• Go away in appropriate situationGo away in appropriate situation
– eg - airlines in plane crasheg - airlines in plane crash
• Be VERY visible in appropriate situationBe VERY visible in appropriate situation– Smart utility in outage scenariosSmart utility in outage scenarios
IssuesIssues
• How do companies determine level of Ad/PR How do companies determine level of Ad/PR SpendingSpending– There are no ‘ideal’ There are no ‘ideal’ GPR levels of exposurelevels of exposure
• Message-dependentMessage-dependent• Competitive environment-dependentCompetitive environment-dependent• Goal-dependentGoal-dependent• eg - introducing new products/brands/copy requires eg - introducing new products/brands/copy requires
higher GRP’s than does maintenance. Even higher GRP’s than does maintenance. Even maintenance GRP’s go UP in competitive maintenance GRP’s go UP in competitive environmentenvironment
IssuesIssues
• Should we trade off Brand Advertising for ‘feet Should we trade off Brand Advertising for ‘feet on the street?’on the street?’
– Good Branding builds sales AND equityGood Branding builds sales AND equity
– ‘‘Feet on the street’ and product Feet on the street’ and product marketing builds sales and CAN marketing builds sales and CAN diminish Brand Value over timediminish Brand Value over time• Automobile rebate exampleAutomobile rebate example
• Competitive computer advertising exampleCompetitive computer advertising example
IssuesIssues
• A Good Brand initiative will yield tangible A Good Brand initiative will yield tangible resultsresults– You can’t react/adjust unless you know it’s You can’t react/adjust unless you know it’s
working/not workingworking/not working– You can’t know if it’s working/not working You can’t know if it’s working/not working
unless you measure itunless you measure it
Issues: Success MetricsIssues: Success Metrics
• Need Regular evaluation:Need Regular evaluation:– Need to measure Brand Need to measure Brand EquityEquity rather than simply rather than simply
Brand AwarenessBrand Awareness– Need a regular review of Advertising/Equity/Sales Need a regular review of Advertising/Equity/Sales
Impact chartsImpact charts
• Consider Exit Strategy as the objectiveConsider Exit Strategy as the objective– If you exit, you winIf you exit, you win– If you don’t exit, you still winIf you don’t exit, you still win– Measure Equity at PPE (Presumed Point of Exit) which Measure Equity at PPE (Presumed Point of Exit) which
defines the growth or attrition in the presumed value of defines the growth or attrition in the presumed value of the company at a potential sale pointthe company at a potential sale point
Issues: Success MetricsIssues: Success Metrics
• Need Regular evaluation:Need Regular evaluation:– % of target population who ‘gets’ our brand % of target population who ‘gets’ our brand
conceptconcept– # of new customers# of new customers– Change in customer‘churn’Change in customer‘churn’– Profitability increases Profitability increases – Open-ness to buy new prospectsOpen-ness to buy new prospects
Issues: Success MetricsIssues: Success Metrics
Do WE know who we are?Do WE know who we are? Do we know who we want to do business with?Do we know who we want to do business with? Do we know what the target market’s preferred Do we know what the target market’s preferred
terms of engagement are?terms of engagement are? Do we understand the competitive marketplace?Do we understand the competitive marketplace? Have we Mapped-The-Gap in the competitive Have we Mapped-The-Gap in the competitive
marketplace?marketplace?
Brand ChecklistBrand Checklist
Are we willing to commit long-term resources for Are we willing to commit long-term resources for long-term gain?long-term gain?
Do we have the ‘guts’ to live by the promises we Do we have the ‘guts’ to live by the promises we make in public?make in public?
Do we understand the issues well enough to be Do we understand the issues well enough to be brief? (Define the Vision)brief? (Define the Vision)
Do we understand who needs to do what to Do we understand who needs to do what to Create the VisionCreate the Vision Maintain the Vision (e.g. –can it wear ears?)Maintain the Vision (e.g. –can it wear ears?) Expand the Vision (We can’t know everything at the start)Expand the Vision (We can’t know everything at the start)
Brand ChecklistBrand Checklist
– Branding is fundamentally different from the other marketing activities — product, pricing, communication, community and distribution — in three ways:• Brands are reflections or outcomes of the firm’s marketing activities
• Unlike the other activities, branding is an integral part of every marketing activity and strategy
• Strong brands can be used to enhance the effectiveness of all other marketing activities
- The presence of a strong brand enhances positive marketing activities such that awareness, exploration and commitment are more effectively established.
Branding SummaryBranding Summary
AwarenessAwareness Exploration /Expansion
Exploration /Expansion CommitmentCommitment DissolutionDissolution
Keys to Customer RelationshipKeys to Customer Relationship
Deadly Sins of Customer ExperienceDeadly Sins of Customer Experience
Customer Experience Over TimeCustomer Experience Over Time
Brand Awareness Is the Key to Success
Customer Experience Is the Key to Success
Building brand awareness leads to traffic Investors need to see site traffic and the
likelihood of future profitability
Offering a great customer experience when nobody knows about the site is a waste of resources as long as a baseline functional standard is being met
Focusing on customer experience is the single most profitable thing a business can do
Customers that have a positive experience with the site are more likely to keep coming back and to tell their peers about it
Positive customer experience leads to purchases at commerce sites, exploration at content sites and participation at community sites
Branding Vs Customer ExperienceBranding Vs Customer Experience
1.
2.
3.
4.
5.
6.
Create a Rich Description of the Target Customer
Develop Use-Case Scenarios for Each Target Segment
Effectively Integrate the Online and Offline Experience
Articulate Clear Stages of Desired Experience
Effectively Assess Relative Levels of Hierarchy
Highly Leverage the Evangelists
Goals for Creating Customer Experience
Goals for Creating Customer Experience
1.
2.
3.
4.
5.
6.
7.
Site’s layout and design
Text, pictures, sound and video that webpages contain
The ways sites enable user-to-user communication
Site’s ability to self-tailor to different users or to allow users to personalize the site
The ways sites enable site-to-user communication or two-way communication
Degree site is linked to other sites
Site’s capabilities to enable commercial transactions
Context
Content
Community
Customization
Communication
Connection
Commerce
Customer InterfaceCustomer Interface
Offering MixOffering Mix
Appeal MixAppeal Mix
Content TypeContent Type
Multimedia MixMultimedia Mix
ContentContent
Community can create attractive content
Community can create attractive content
Community can make certain activities possible or
easier, thus satisfying needs not attainable
individually
Community can make certain activities possible or
easier, thus satisfying needs not attainable
individually
CommunityCommunity
PersonalizationPersonalization
Tailoring by SiteTailoring by Site
CustomizationCustomization
Personalization Tailoring by Site
Login Registration Cookies Personalized E-Mail Accounts Content and Layout Configuration Storage Agents
Tailoring based on past user behavior
Tailoring based on behavior of other users with similar preferences
Is– Land’s EndIs– Land’s End
Is– Mercury MarinerIs– Mercury Mariner
http://www.mercuryvehicles.com/marinerhybrid/preorder.asp
Is – Luxury Retailer on the WebIs – Luxury Retailer on the Webhttp://www.pearlparadise.com/
Interactivity, Viral MarketingInteractivity, Viral Marketing
Burger King’s: http://www.subservientchicken.com/GAP’s: http://www.watchmechange.com/
Mitsubishi: Thrill Ride Challenge http://www.mitsubishicars.com/06eclipse/
Ford Supercar Challenge: http://www.fordvehicles.com/supercarchallenge/err/index.asp
Sims: http://thesims.ea.com/index_flash.php, http://simcity.ea.com/about/simcity4/flash.php
BroadcastBroadcast
InteractiveInteractive
CommunicationCommunication
Broadcast Interactive
Mass Mailings FAQs E-Mail Newsletters Content Update Notifications Broadcast Events
E-Commerce Dialogue Customer Service User Input
Homesite BackgroundHomesite Background
Outsourced ContentOutsourced Content
Pathway of ConnectionPathway of Connection
Percent of Homesite ContentPercent of Homesite Content
Links to SitesLinks to Sites
ConnectionConnection
Shopping CartShopping Cart
SecuritySecurity
One-Click ShoppingOne-Click Shopping
Credit Card ApprovalCredit Card Approval
RegistrationRegistration
Configuration Technology
Configuration Technology
Order TrackingOrder Tracking
Delivery OptionsDelivery Options
Orders Through Affilates
Orders Through Affilates
CommerceCommerce
EBAYEBAY
EBAYEBAY
Automobile
Expensive Watch
Scotch Whiskey
Wine for Dinner Party
Face Soap
Eyeglasses
Paper Towels
Disposable Razor
Liquid BleachInsect Repellent
Salad Oil
Insecticide
Toilet Tissue
35-mm Camera
Stereo Component
Credit Card
Headache Remedy
Hair Coloring
Deodorant Soap
Soft DrinkPotato Chips
Washer/Dryer
High
Low
Relationship InvolvementRelationship Involvement
Short Long
Customer Lifetime
Low
Hig
h
Pro
fita
bil
ity
Customer Tenure and ProfitabilityCustomer Tenure and Profitability
A Time and Place for IIA Time and Place for II
High Individualization,
Low Interactivity
Example: bank statement
High Individualization,
High Interactivity
Example: Design Robot
Low Individualization,
Low Interactivity
Example: news service
Low Individualization,
High Interactivity
Example: library
Level of Interactivity
Level of Indiv.
Price
Product
Promotion
Distribution
Brand
Marketing Levers
AwarenessAwareness Exploration/Expansion
Exploration/Expansion CommitmentCommitment DissolutionDissolution
A Framework for Building CR on the Web
A Framework for Building CR on the Web
Target Market
Product
Product Idea
PhysicalGood/service
FeaturesQuality
AccessoriesInstallationInstructionsProduct Line
IndividualFamily
ManufacturerDealer
Brand
ProtectionPromotion
Both
Package
NoneFull
Limited
Warranty
Price Place Promotion
Product DefinitionProduct Definition
Augmented Product
Basic Product Daily Newsletter
Advice
In-Depth Information
Engine
Tires
Radio
Extended Warranty
Trade In
Financing
MealPreparation
Fitness Books
Exercise Plan
Traditional: Sports Utility Vehicle
New Economy: e-diets.com
Transportation Dieting Information Core Benefit
Val
ue P
ropo
sitio
n
Product Value AdProduct Value Ad
Diff
Product Type Primary Purpose Internet Properties Examples
Digitized Good Provides core benefit in digitized form online
Is not used up in consumption; easily reproducible; transferable
Downloadable software, music, newspapers
Service Performs core servic e benefit online
Standardizes service; allows producer and consumer to be separated in space and time; adds vividness to intangibles
Schwab.com, eDiets.com, Yahoo Sports Fantasy Baseball Plus
Retail or Distribution Service
Sells, brokers, or distributes p roduct delivered offline
Helps dispose of perishable inventory; aggregates demand
Amazon.com, priceline, FreeMarkets
Product Augmentation
Adds extra services or benefits to a service or product
Differentiates at low incremental cost
FedEx, Fidelity
Internet Product TypesInternet Product Types
Hi-Lo PricingHi-Lo Pricing Everyday Low Pricing
Everyday Low Pricing
No Pricing No Pricing FlexibilityFlexibility
No Pricing No Pricing FlexibilityFlexibility
Price at market Price at market
Corporate MandateCorporate MandateCorporate MandateCorporate Mandate
Target return pricing Target profit return
Target return pricing Target profit return
High Initial DemandHigh Initial DemandHigh Initial DemandHigh Initial Demand
Fairness pricing Bundling Frenzy pricing Price discrimination
over time
Fairness pricing Bundling Frenzy pricing Price discrimination
over time
Correlated DemandCorrelated DemandCorrelated DemandCorrelated Demand
Bundling Volume discount
pricing Two-part pricing
Bundling Volume discount
pricing Two-part pricing
Dynamic PricingDynamic PricingDynamic PricingDynamic Pricing
English auction Reverse English
auction Dutch auction
(regular and eBay type)
First price sealed-bid auction (regular and Priceline type)
Reverse first price sealed-bid auction
Group buying Electronic exchange
English auction Reverse English
auction Dutch auction
(regular and eBay type)
First price sealed-bid auction (regular and Priceline type)
Reverse first price sealed-bid auction
Group buying Electronic exchange
Price as Price as Marketing StrategyMarketing Strategy
Price as Price as Marketing StrategyMarketing Strategy
Prestige Sign of quality Promotional
Prestige Sign of quality Promotional
Select Retail Pricing Strategy
Select Retail Pricing Strategy
Select Pricing StrategySelect Pricing Strategy
Pricing Strategy FrameworkPricing Strategy Framework
The Internet Will Lead to Price Commoditization
The Internet Will Not Commoditize Prices
The Internet makes vast amounts of information available to consumers. As a result, markets will become more efficient, and differences in products and pricing will decrease
Consumers on the Internet are not restricted by geography when making their purchases, so they are free to choose among a wider range of providers and may switch more frequently
On the Internet, providers have difficulty differentiating their
products; they find it hard to compete on anything but price
Even if all else is equal, brand will still command a premium
Providers are able to differentiate their offerings by bundling products and services; consumers will place a premium on attractive
"bundles"
The Internet makes it possible for consumers to create their own products and bundles
The Internet offers consumers a new convenient purchasing experience that they are willing to
pay for
Product Pricing and the InternetProduct Pricing and the Internet
Pricing SinsPricing Sins
– Firms have a wide variety of potential pricing strategies and price points to consider when deciding how to best implement profit-maximizing strategies.
– Firms face multiple pricing decisions including basic, dynamic, and advanced pricing strategies.
– There are a variety of pricing levers for firms to employ in their pricing strategies. Each stage of the customer relationship has a set of appropriate pricing levers that should be used.
Pricing SummaryPricing Summary
On
line
Off
line
OutdoorAdvertising (Billboards)
Yellow Pages
Radio
Television
Brochures
Newspapers
Sponsorships
Magazines
Newsletters
Point-of-Purchase Displays
Customer Service
Direct Mailings
Telemarketing
Sales force/Face-
to-Face
Banner Ads
Rich Media
Search Engines
Interstitials
Classifieds & Listings
Wireless Devices
Websites
E-MailMarketing
Personal Websites
Mass Personal
Public Relations
Dynamic Ads
Interactive
Television
Online/Offline PromotionOnline/Offline Promotion
Medium Advantages Disadvantages
Websites/Personalized websites
Communicate rich, detailed information that users can navigate at will; can track users and customize site accordingly.
Narrow reach
Banner ads Link directly to buying opportunity; easy to me asure effectiveness; wide reach; potential for effective targeting
Low attention and click -through rates; short life; limited “pass -along” audience; very high clutter; fleeting exposure
Interstitials Catch users’ attention; link to buying opportunity Can annoy users; limited “pass -along” audience
Rich media Attention -getting; link to buying opportunity Can annoy users without broadband access
Dynamic ad placement Serves up customized ads to users in real time Difficult to execute well; can annoy users, o ther advertisers
Search engines Good credibility; high believability; guarantee of position available; significant audience at major sites
High competition; information overload; limited “pass-along”
Classifieds and listings
Relatively inexpensive, poten tial for wide exposure; qualified audience
Clutter
Opt-in e-mail High demographic selectivity; high credibility; significant flexibility; proven high click -through rates; absolutely inexpensive; some pass -along
Requires substantial user base before effect ive; high clutter
Mass e-mail High reach; inexpensive; flexible Low attention and significant resentment (spam image)
Customer service Interested parties asking for help, thus high targeting value; generates loyal customers
Very expensive to provide comp rehensive telephone, e -mail, and online support
Types of Online MediaTypes of Online Media
Aggregate number of user clicks on a banner adAd ClicksAd Clicks
Number of times a banner ad is downloaded to a user’s browser and presumably looked at
Ad Views (Impressions)
Ad Views (Impressions)
Percentage of ad views that are clicked upon; also “Ad Click Rate”Click-ThroughClick-Through
Formula used to calculate what an advertiser will pay to an Internet publisher based on number of click-throughs a banner generates
CPC(Cost-per-Click)
CPC(Cost-per-Click)
Cost per thousand impressions of a banner ad; a publisher that charges $10,000 per banner and guarantees 500,000 impressions has a CPM of $20 ($10,000 divided by 500)CPMCPM
Measurement recorded in server log files that represent each file downloaded to a browser; since page design can include multiple files, hits are not a good guide for measuring traffic at a website
HitHit
Number of individuals who visit a website in a specified period of time; requires the use of registration or cookies to verify and identify unique usersUnique UsersUnique Users
A series of requests made by an individual at one site; if no information is requested for a certain period of time, a “time-out” occurs and the next request made counts as a new visit — a 30 minute time-out is now standard
VisitsVisits
Selected Internet Ad TermsSelected Internet Ad Terms
CommunicationCriteria
MediaCriteria
Chose Media Mix
Tie Back toOverall
Plan
AllocateSpending
Behavioral objectives
Available spending
Customer segments
Ability to further behavioral objectives
CPM
Ability to reach target segments
Direct mail, Internet, broadcast, print, point-of-sale, etc.
Tie media plan back to communications plan (e.g., make sure the media plan will drive the trial or awareness required)
Allocation of spending across media mix elements and time periods based on relative priority
Promotion ProcessPromotion Process
Level of Community Nascent Formative Mature
People Characteristics
Small number of core members, small number of participants
Small number of core members, higher number of participants
Users begin to build equity
Increased number of core members, high number of participants
Users become operationally entangled
Process Characteristics
Somewhat less defined and focused processes of communication
Lack of segmentation of users/little segmentation of discussion topics
Small number of core members, higher number of participants
Users begin to build equity
Efficient processes of communication established
Clear segmentation of topics and users
Culture Characteristics
Momentum is kickstarted and driven by core group of founders
High on energy, low on focus
Community’s brand is evolving
Gains more momentum
Refinement of missions/ goals (as defined by members)
Community is building a solidified brand
Achieves critical mass
Mission close to fully defined according to members
Membership alignment in shaping of the community
Leadership positions wi thin the community are established
Community establishes brand
Technological Characteristics
Fewer technological options for communications
More options for communication technology explored
Preferre d technology used for communication is established
Community LevelsCommunity Levels
Nascent Formative Mature
General Strategy and Operational Objectives
Aim for growth (in membership)
Attract users by creating administrator -user value, promote administrator -generated content
Seek feedback to determine where the community is going
Find and build upon one or a few well -used methods of communication
Foment relationships and vibrant discussion within only a small number of community groups
Aim for change (in functionality and mission)
Leverage increasing size to create user-to-user val ue and promote user -generated content
Seek feedback to further refine community goals and mission according to members
Explore different processes of communication (asynchronous vs. real time, or both)
Refine community facilitation processes; establish rol es for which members are chosen and can volunteer for (e.g., watchpeople, guides)
Leverage CRM to tailor site and functionality to the member
Allow for further segmentation of discussion topics
Aim for sustainability (in solidifying branding and presence)
Leverage size to increase user-administrator value (e.g., advertising)
Establish reliable feedback loops to ensure the recognition of member needs
Determine most appropriate methods of community communication
Further develop community leaders/caretakers of the community to create sustainability
Incorporate offline events/ marketing to further solidify community relationships, activities and community presence
Leverage processes of offline community (e.g., rituals and tradition)
Marketing Objectives
Increase member base
Get the word out
Use good content to attract members
Refine community vision (as defined by members)
Generate equity for members within community
Establish solid mission and brand
Establish community presence
Expand possibilities for equity generation
Community Building OptionsCommunity Building Options
Community Example - EBAYCommunity Example - EBAY
29334
3153 2904 2778905
0
5,000
10,000
15,000
20,000
25,000
30,000
eBay uBid.com YahooAuctions
Andale Sites Qool.com
Mo
nth
ly U
niq
ue
Vis
ito
rs(i
n t
ho
usa
nd
s)Community Effect Example - EBAYCommunity Effect Example - EBAY
Place Objectives
Channel Type Service Level
Direct Indirect
Market Exposure
Middlemen Management
DistributionType
Place StrategyPlace Strategy
Transportation CostTransportation Cost
Lost SalesLost Sales
Inventory CostsInventory Costs
Total CostsTotal Costs
Customer Service Level (%)Customer Service Level (%)
Cos
ts (
$)C
osts
($)
Physical DistributionPhysical Distribution
C
C
C
1
2
3
4
5
6
7
8
9
(a) Number of contactsM x C = 3 x 3 = 9
1
2
3
4
5
6
(b) Number of contactsM + C = 3 + 3 = 6
M = Manufacturer C = Customer D = Distributor
D
M
M
M
C
C
C
M
M
M
Channel Efficiency and IntermediariesChannel Efficiency and Intermediaries
Market Information Monitoring sales trends, inventory levels, competitive behavior
Promotional Effort Banner ads, sales promotions, traditional advertising support, personal selling
Transactional Activities
Bargaining on price and terms, order processing, credit, inventory and assortments
Storage and Transportation
Warehousing, transportation to buyer, sorting and packaging into desired forms
Facilitation Activities Credit card processing, invoicing, shipping confirmations
Installation and Service
Technical support, customer service lines, warranty work, repair, spare parts, etc.
Distributor Value AddDistributor Value Add
– The Internet is a distribution channel. It facilitates the exchange of goods and services between buyers and sellers.
– The Internet has become a driving force for disintermediation.
– The distribution levers include activities that affect buyer-seller relationships through the type of intermediary, number of intermediaries, intermediary functions and responsibilities, number of channels and degree of channel integration.
– The distribution levers can be applied to affect buyer-seller relationships in each of the customer relationship stages.
Distribution SummaryDistribution Summary
MarketerMarketer PublicPublicPublicPublic
ConsumerConsumerConsumerConsumer
CustomerCustomerCustomerCustomerMarketing Research
Market Problems
Target Market
Market Opportunities
IdentificationIdentification
DefinitionDefinition
ActionAction
Market ResearchMarket Research
Quickly gain crucial market intelligenceQuickly gain crucial market intelligence
Act upon first-mover advantagesAct upon first-mover advantages
Stay afloat in a fast-paced environmentStay afloat in a fast-paced environment
Reduce market research costsReduce market research costs
Many more…Many more…
Benefits of Internet Market ResearchBenefits of Internet Market Research
Market Research UsesMarket Research Uses
Who are mycustomers?
Who are mycustomers? Conjoint
Analysis
How to segment
the market?
How to segment
the market?
What isthe price
elasticity?
What isthe price
elasticity?
What are the growth
trends?
What are the growth
trends?
Who are my competitors?
Who are my competitors?
What dothey like?
What dothey like?
Whendo they
purchase?
Whendo they
purchase?
MarketingResearchMarketingResearch
Opinion Research
Competitive Analysis
Buying-Habit Studies
Environmental Studies
Customer Identification
Discrete Choice Modeling
HighLowEthical Issues (privacy)
LowHigh to MediumAnonymity guarantee
UnlimitedLimitedGeographical Coverage
LowHighInterviewer Bias
UnlimitedLimitedDelivery/Illustration
High to Uncontrollable**ControllableSample-selection Bias
InaccurateAccurateSampling
LowHighResearcher Control
HighMediumData Quality*
Labor-NonintensiveLabor-IntensiveEffort
QuickSlowTurnaround Time
LowHighCost
Online MethodOffline MethodDecision Factor
* Quality of data is defined here as ease and timeliness of data collection and entry.
** As the Internet becomes ubiquitous, this issue is becoming less important.
Market Research Types Market Research Types
Values
GOALS
STRUCTURE
CLIMATE
ENVIRONMENT
MarketplaceOther Teams
CultureCompetition
Pressures
Clarity Commitment
Reward System
Reporting Relationships
Feedback System
Behavior Norm
Decision Making
Competition
Enthusiasm
Stress
Trust
Involvement
Flexibility
Collaboration Mission Philosophy
Accountability
ORGANIZATIONAL EFFECTIVENESSORGANIZATIONAL EFFECTIVENESS
Joseph Lewis Aguirre
Design ExperienceDesign Experience Design ExperienceDesign Experience
http://www.interaction-ivrea.it/en/index.asp
http://www.monsterskate.com/
http://www.visualthesaurus.com/
http://www.hermanmiller.com/
http://www.generalmills.com/corporate/index.aspx
www.reflect.com
Design ExperienceDesign Experience
Online MarketingOnline Marketing
www.godaddy.com
http://smallbusiness.yahoo.com/merchant/
http://www.google.com/ads/
http://www.cj.com/
http://www.content.overture.com/d/