1. EBUS 400 eCommerce Joseph Lewis Aguirre

2. eBusiness Strategy Define eBusiness. Describe the strategy component of eBusiness. eBusiness IT Infrastructure & Supply Chain Describe the IT infrastructure component of eBusiness. Examine the supply chain component of eBusiness. eBusiness Marketing Examine the marketing component of eBusiness. eBusiness Legal, Ethical, and Regulatory Issues Examine the legal, Ethical, and regulatory component of eBusiness. eBusiness Trends Examine eBusiness trends OBJECTIVES

3. Joseph Lewis Aguirre Human Computer Interaction

4. Value of Information Timeliness - 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

5. Value 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

6. Value of Information Quantifiability Appropriateness of format, medium of display ordering of the information graphical vs. tabular display Quantity: more is not better!

7. 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. HCI

8. U/I Components Metaphors Navigation Mental models Interaction Appearance Usability

9. Usability Evaluation Techniques Applicability in PhaseAllAllDesign Required TimeLowMedHigh Needed UsersNoneNoneNone Required Evaluators3+3+1-2 Required EquipmentLowLowLow Required ExpertiseMedHighHigh IntrusiveNoNoNo Heuristic Cognitive Action Evaluation Walkthrough Analysis INSPECTION METHOD

10. Usability Evaluation Techniques Applicability in PhaseDesignFinal TestAll Required TimeHighMedLow Needed Users3+20+30+ Required Evaluators11+1 Required EquipmentHighMedLow Required ExpertiseMedHighLow IntrusiveYesYesNo Thinking Field Question Aloud Observation TEST METHODS

11. Ken Olsen, (founder and CEO of Digital Equipment), confessed that he couldnt figure out how to heat coffee in the companys 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/I

12. 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/I

13. 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/I

14. 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/I

15. 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/I

16. Kitchen Timer Door traps HCI - Examples Fridge

17. File Cabinet HCI - Examples

18. Birthdate: Telephone Number: 4/21/81 510-642-5117 Birthdate: Telephone Number: / / ( - ) HCI Choices

20. Joseph Lewis Aguirre Marketing Concept

21. 4Ps + 2Is Strategy Domain Name Viral Marketing Stickiness Index Affinity Groups WS3: Marketing Concept

22. Stickiness Index AltaVista Alltheweb Google MSN Infoseek Hotbot Fast

23. Profits Customer Satisfaction Company Effort The Marketing Concept

24. eBusiness Planning Framework Environment CompetitionObjectiveTechnologyCustomers STRENGTHS, WEAKNESSES, OPPORTUNITIES, THREATS, TRENDS (SWOTT) SEGMENTATIONTARGETINGPOSITIONING PRODUCTPRICEPROMOTIONPRICE

25. Strategy: Growth Matrix Market Develop. Product Develop. Market Penetration Diversify. PRESENTFUTURE PRESENT FUTURE PRODUCT MARKET Ansoffs Product Market Matrix

26. Its 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 Thing

27. –Coke –Coke : A coke within an arms length of everyone on the planet –Intel –Intel : Its whats inside that counts –Nike –Nike : Just Do It! –Disney : Can it wear ears? Visions that work

28. Leverage the Internet to Improve the Consumer 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 Microsofts Software and Free Placement on All Its Websites How Big Is the Online Car-Buying Market? Who Are CarPoints Main Competitors? Make 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 Microsofts 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 Opportunity

29. SEGMENTATION OPTIONS

30. Meaningful Actionable Substantial Measurable 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 OBJECTIVES

31. a more balanced revenue mix imaging & printing 41% access 21% enterprise 19% services 19% total: $47 billion services 18% enterprise 34% total: $40 billion imaging & printing 22% access 33% enterprise 26% services 19% total: $87 billion access 48% hp compaq combined *All data based on estimated trailing four quarters. Source: SEC filings, press releases, and company estimates. Carlis Strategy: HP Product Mix BC

32. a more balanced revenue mix imaging & printing 41% access 21% enterprise 19% services 19% total: $47 billion services 18% enterprise 34% total: $40 billion imaging & printing 22% access 33% enterprise 26% services 19% total: $87 billion access 48% hp compaq combined *All data based on estimated trailing four quarters. Source: SEC filings, press releases, and company estimates. Post Carlis : HP Beyond Ink Sales

33. DIGITAL CAMERA SEGMENTATION

34. Purchase Occasion Reader Self-ConsumptionGiftInstitutional By 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 Required Reading Comp- endium by Topic Advice and Recom- mend- ations E-BOOKS SEGMENTATION

35. 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 CUSTOMERS

36. 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 individuals 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 customers 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 consumers 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 Experience

37. Stage Three: Evangelism Supports evangelists Acknowledgment of evangelists Desire to make messages to the market Community benefits Stages of Customer Experience

38. 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 Areas

39. Element Money Growth Concentration Literacy Focus on Relative Buying Power Rate of Growth Population Density Communication concerns Potential Markets

40. Branding PLACE PRODUCT Individual PROMOTIONPRICE Interactivity II & The Product Mix

41. Banner Ad (to promote awareness) Personalized Website Permission e- mails Individualized offerings Personalized Website Permission e- mails Individualized offerings Website Awareness Commitment Exploration User clicks on banner to find out more User can set up the webpage according to personal preferences, register for e-mails, give feedback, or make a purchase The II Through Stages One Seamless Experience

42. Cell 4 Cell 2 Cell 3 Cell 1 Location of Revenue Stream Bricks-and- Mortar Online Marketing Resource Allocation OfflineOnline Impact of Internet Marketing

43. –Blackbeard –Nazi –Volkswagen –Believers –Infidels/Gentiles –IBM –Amazon.com –Andersen Consulting –Route 66 –Tom Clancy –Mark Twain –Albert Einstein –The Kennedys –Al Capone –Ted Turner –CNN –Nickelodeon –Marlboro –Sports Illustrated Swimsuit Edition –The New York Times –Them –The White House Brands through history

44. –Brands MercedesMercedes The Beach BoysThe Beach Boys KodakKodak DisneyDisney Intel (Today)Intel (Today) VirginVirgin –NOT Brands General MotorsGeneral Motors The BeatlesThe Beatles XeroxXerox Time-WarnerTime-Warner Berkshire HathawayBerkshire Hathaway Brands through history

45. –67% - There is no risk associated with buying brands with which you are not familiar Lack of substantive differentiationLack of substantive differentiation –72% - A well-known brand is an important factor on making buying decisions Selection shorthandSelection shorthand Why Brand

46. –Brand as Energy: Amazon.comAmazon.com –Brand as Security Stew LeonardsStew Leonards –Brand as Quality/Choice Editor NordstromNordstrom –Anti-brand AudiAudi –Evolving: Brand as known and reliable sub- contractor IT OpportunityIT Opportunity Brand Types

47. Brand matters because We all live in a Plan B Universe –Limited Resources Time –Unlimited Options Money Energy –Limited Consequences Brand Drivers

48. 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 Factor

53. Every company has an identity – whether it chooses to control that image, or notEvery company has an identity – whether it chooses to control that image, or not A Good Brand is an identify which isA Good Brand is an identify which is –Recognition shorthand –Consciously developed –Purposeful –Cultivated A Bad BrandA Bad Brand –Is what happens to you –The discrepancy between promise and delivery Brand Truisms

54. A Brand is the difference between inherent worth and perceived valueA Brand is the difference between inherent worth and perceived value A Brand is a Unique Selling Proposition which translates intoA Brand is a Unique Selling Proposition which translates into –Marketing Advantage –Profit Margin –Higher Multiples Brand Truisms

55. A Brand hasA Brand has –An aura –Identity –Personality –Customer-stickiness –Positive inertia Brand Truisms

56. For Example: Brand Examples

57. Chicken Poop Haul it Away, Please! What is a brand worth?

58. Premium Natural Fertilizer $ 10.00 per drum What is a brand worth?

59. Agricultural Chemicals $25.00/c.wt. What is a brand worth?

60. Better Living through Chemistry $50/bag DUPONT What is a brand worth?

61. The Business Customers (number/type) Fees/Prices (revenue) Defines & Drives Business Value The Brand Customers (number/type) Potential Markets Served (size/growth) Brand Share Potential Brand Contribution Brand Value The Business and the Brand are Intertwined Todays business is the DNA of the Brand and its potential to create value via strategic decisions, such as diversification Measuring Brand Value

62. Brand Equity Brand LoyaltyBrand AwarenessPerceived QualityBrand AssociationsOther Assets Reduced Marketing Costs Trade Leverage Attracting New Customers Time 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 Customers: Interpretation / Processing of Info Interpretation / Processing of Info Confidence in the Purchase Decision Confidence in the Purchase Decision Use Satisfaction Use Satisfaction Provides Value To Firm By Enhancing : Efficiency & Effectiveness of Marketing Programs Price / Margins Brand Extensions Competitive Advantage Brand Equity

63. BrandAwareness UniqueSellingProposition BrandDNABrandExperience Brand Awareness is Only One element of Brand Equity Measuring Brand Value

64. Demand Curve Shift With Brand Equity Volume Effect Q2Q2 Q1Q1 P2P2 P1P1 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

65. How Brand Equity Impacts PE Financial-Centric Companies CompanyPEMktCap CompanyPEMktCap 1. Bergen Brunswig14 $2.1B 2. Ingersol Rand19.7 10.9B 3. Dow Chemical21.5 27.6B 4. Conectiv11.12 $2.0B Brand-Centric Companies CompanyPEMktCap CompanyPEMktCap 1. P&G35.2$133B 2. Gillette39.2 50B 3. Coca Cola47.9 146B 4. Disney40.7$61.4B Hot Market-Centric Companies CompanyPEMktCap CompanyPEMktCap 1. AOL253$109.4B 2. Yahoo311 $39.6B 3. Excite491 $7.3B 4. Amazon-119 $20.2B The Reason Brand-Centric Companies have (traditionally) higher PEs stems from premiums in pricing and growth potential Measuring Brand Value- Brand Equity Vs PE

66. Brand-Centric Companies Brand-Centric Companies CompanyU.S. RevenueU.S. Ad SpendingAd $ as % of Sales CompanyU.S. RevenueU.S. Ad SpendingAd $ as % of Sales 1. P&G$18,460M$2,743M 14.9 2. Gillette 3,682M 578M 15.7 3. Coca Cola 6,443M 710M 11.0 How Much Advertising is Enough? Advertising

67. Comparables Conectiv.6% SBC1.3% BellSouth1.5% AT&T1.5% Bell A.1.9% MCI3.9% Sprint3.5% Brand $$ Kodak5.7% Cendant5.4% Sherwin-W. 6.3% Starwood 23.4% Advertising Spending

68. Standards Disney7.0% Amex3.1% GE.46% Advertising Spending

69. –Brand Awareness People KNOW who you arePeople KNOW who you are –Brand Equity People pay PremiumPeople pay Premium –To do business with you –To own you Building a Brand Vs Brand Equity

70. –Awareness –DNA –Experience Brand Equity Dimensions

71. –Vision –CEO as Keeper of the Marque –Consistency –Commitment –Patience Building Strong Brands

72. Bases for VisionBases for Vision –Promotability –Operational Excellence –Product Excellence –USP –Powerful Potential Building Strong Brands

73. If it doesnt line up – it doesnt add upIf it doesnt line up – it doesnt add up –What you SAY to the world –What you DO in the world –What you DO inside Building Strong Brands

74. STATE Rejection Non Recognitions Recognition Preference Insistence STRATEGY Change Position Increase Awareness Continue Education Maintain Availability Develop High Brand Equity Branding Strategy

75. 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 theyre looking for, and they often know from whom they want to buy it. … Theyre just not listening to branding messages anymore. – Michael Fischler, Principal, The Pubs Group Online Branding

76. Selected Internet Brands

77. Established as Traditional Brand Established as Online Brand Source: PricewaterhouseCoopers Moneytree Report 2000. Successful Online Branding Examples

78. 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 companys website is the brand. Its the hub of consumer experience, the place where all aspects of a company, from its annual report to its products to its support, intersect. Its 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 Branding

79. Product, Price, Community, Communication and Distribution Programs Wraparounds Core Product/ Service 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 Model

80. 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 higherconversion 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 Brands

81. Clearly Define the Target Audience Step 1 Step 3 Step 2 Step 4 Step 5 Step 6 Step 7 Understand the Target Customer Understand the Competition Design Compelling Brand Intent Identify Key Leverage Points in Customer Experience Execute the Branding Strategy Establish Feedback Systems Branding Process

82. 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 consuming Sophisticated tools exist for tracking online; allow for anonymous, interactive, quick feedback Branding Type Comparison

83. How do companies determine level of Ad or PR SpendingHow do companies determine level of Ad or PR Spending –Industry Standards –Goal 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 Standards Go away in appropriate situationGo away in appropriate situation –eg - airlines in plane crash Be VERY visible in appropriate situationBe VERY visible in appropriate situation –Smart utility in outage scenarios Issues

84. How do companies determine level of Ad/PR SpendingHow do companies determine level of Ad/PR Spending –There are no ideal GPR levels of exposure GPR Message-dependentMessage-dependent Competitive environment-dependentCompetitive environment-dependent Goal-dependentGoal-dependent eg - introducing new products/brands/copy requires higher GRPs than does maintenance. Even maintenance GRPs go UP in competitive environmenteg - introducing new products/brands/copy requires higher GRPs than does maintenance. Even maintenance GRPs go UP in competitive environment Issues

85. Should we trade off Brand Advertising for feet on the street?Should we trade off Brand Advertising for feet on the street? –Good Branding builds sales AND equity –Feet on the street and product marketing builds sales and CAN diminish Brand Value over time Automobile rebate exampleAutomobile rebate example Competitive computer advertising exampleCompetitive computer advertising example Issues

86. A Good Brand initiative will yield tangible resultsA Good Brand initiative will yield tangible results –You cant react/adjust unless you know its working/not working –You cant know if its working/not working unless you measure it Issues: Success Metrics

87. Need Regular evaluation:Need Regular evaluation: –Need to measure Brand Equity rather than simply Brand Awareness –Need a regular review of Advertising/Equity/Sales Impact charts Consider Exit Strategy as the objectiveConsider Exit Strategy as the objective –If you exit, you win –If you dont exit, you still win –Measure Equity at PPE (Presumed Point of Exit) which defines the growth or attrition in the presumed value of the company at a potential sale point Issues: Success Metrics

88. Need Regular evaluation:Need Regular evaluation: –% of target population who gets our brand concept –# of new customers –Change in customerchurn –Profitability increases –Open-ness to buy new prospects Issues: Success Metrics

89. 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 markets preferred terms of engagement are? Do we know what the target markets preferred terms of engagement are? Do we understand the competitive marketplace? Do we understand the competitive marketplace? Have we Mapped-The-Gap in the competitive marketplace? Have we Mapped-The-Gap in the competitive marketplace? Brand Checklist

90. Are we willing to commit long-term resources for long-term gain? Are we willing to commit long-term resources for long-term gain? Do we have the guts to live by the promises we make in public? Do we have the guts to live by the promises we make in public? Do we understand the issues well enough to be brief? (Define the Vision) Do we understand the issues well enough to be brief? (Define the Vision) Do we understand who needs to do what to Do we understand who needs to do what to Create the Vision Create the Vision Maintain the Vision (e.g. –can it wear ears?) Maintain the Vision (e.g. –can it wear ears?) Expand the Vision (We cant know everything at the start) Expand the Vision (We cant know everything at the start) Brand Checklist

91. –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 firms 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 Summary

92. Awareness Exploration / Expansion CommitmentDissolution Keys to Customer Relationship

93. Deadly Sins of Customer Experience

94. Customer Experience Over Time

95. Branding Vs Customer Experience

96. 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

97. 1. 2. 3. 4. 5. 6. 7. Sites layout and design Text, pictures, sound and video that webpages contain The ways sites enable user-to-user communication Sites 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 Sites capabilities to enable commercial transactions Context Content Community Customization Communication Connection Commerce Customer Interface

98. Offering Mix Appeal Mix Content Type Multimedia Mix Content

99. Community can create attractive content Community can make certain activities possible or easier, thus satisfying needs not attainable individually Community

100. Personalization Tailoring by Site Customization 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

101. Is– Lands End

102. Is– Mercury Mariner http://www.mercuryvehicles.com/marinerhybrid/preorder.asp

103. Is – Luxury Retailer on the Web http://www.pearlparadise.com/

104. Interactivity, Viral Marketing Burger Kings: http://www.subservientchicken.com/ GAPs: 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

105. Broadcast Interactive Communication Broadcast Interactive Mass Mailings FAQs E-Mail Newsletters Content Update Notifications Broadcast Events E-Commerce Dialogue Customer Service User Input

106. Homesite Background Outsourced Content Pathway of Connection Percent of Homesite Content Links to Sites Connection

107. Shopping Cart Security One-Click Shopping Credit Card Approval Registration Configuration Technology Order Tracking Delivery Options Orders Through Affilates Commerce

108. EBAY

110. Automobile Expensive Watch Scotch Whiskey Wine for Dinner Party Face Soap Eyeglasses Paper Towels Disposable Razor Liquid Bleach Insect Repellent Salad Oil Insecticide Toilet Tissue 35-mm Camera Stereo Component Credit Card Headache Remedy Hair Coloring Deodorant Soap Soft Drink Potato Chips Washer/Dryer High Low Relationship Involvement

111. ShortLong Customer Lifetime Low High Profitability Customer Tenure and Profitability

112. A 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.

113. Price Product Promotion Distribution Brand Marketing Levers Awareness Exploration/ Expansion Exploration/ Expansion Commitment Dissolution A Framework for Building CR on the Web

114. Target Market Product Product Idea Physical Good/service Features Quality Accessories Installation Instructions Product Line Individual Family Manufacturer Dealer Brand Protection Promotion Both Package None Full Limited Warranty PricePlacePromotion Product Definition

115. Augmented Product Basic Product Daily Newsletter Advice In-Depth Information Engine Tires Radio Extended Warranty Trade In Financing Meal Preparation Fitness Books Exercise Plan Traditional: Sports Utility Vehicle New Economy: e-diets.com Transportation Dieting Information Core Benefit Value Proposition Product Value Ad Diff

116. 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 service 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 product 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 Types

117. Hi-Lo Pricing Everyday Low Pricing No Pricing Flexibility Price at market Corporate Mandate Target return pricing Target profit return Target return pricing Target profit return High Initial Demand Fairness pricing Bundling Frenzy pricing Price discrimination over time Fairness pricing Bundling Frenzy pricing Price discrimination over time Correlated Demand Bundling Volume discount pricing Two-part pricing Bundling Volume discount pricing Two-part pricing Dynamic 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 Marketing Strategy Prestige Sign of quality Promotional Prestige Sign of quality Promotional Select Retail Pricing Strategy Select Pricing Strategy Pricing Strategy Framework

118. 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 willdecrease 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 Internet

119. Pricing Sins

120. –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 Summary

121. Online Offline Outdoor Advertising (Billboards) Yellow Pages Radio Televisio n Brochure s Newspapers Sponsorship s Magazine s Newsletter s Point-of- Purchase Displays Customer Service Direct Mailings Telemarketing Sales force/Face- to-Face Banner Ads Rich Media Search Engines Interstitial s Classifieds & Listings Wireless Devices Websites E-Mail Marketing Personal Websites Mass Personal Public Relations Dynamic Ads Interactiv e Television Online/Offline Promotion

122. 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 measure 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 Canannoy users; limited pass-along audience Rich media Attention-getting; link to buying opportunity Can annoy users without broadband access Customer service Interested parties asking for help, thus high targeting value; generates loyal customers Very expensive to provide comprehensive telephone, e-mail, and online support Types of Online Media

123. Aggregate number of user clicks on a banner ad Ad Clicks Number of times a banner ad is downloaded to a users browser and presumably looked at Ad Views (Impressions) Percentage of ad views that are clicked upon; also Ad Click Rate Click-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) 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) CPM 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 Hit 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 users Unique 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 Visits Selected Internet Ad Terms

124. Communication Criteria Media Criteria Chose Media Mix Tie Back to Overall Plan Allocate Spending 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 Process

125. 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 iskickstarted and driven by core group of founders High on energy, low on focus Communitys 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 within the community are established Community establishes brand Technological Characteristics Fewer technological options for communications More options for communication technology explored Preferred technology used for communication is established Community Levels

126. 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 value 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 roles 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 Options

127. Community Example - EBAY

128. 29334 3153 2904 2778 905 0 5,000 10,000 15,000 20,000 25,000 30,000 eBayuBid.comYahoo Auctions Andale SitesQool.com Monthly Unique Visitors (in thousands) Community Effect Example - EBAY

129. Place Objectives Channel TypeService Level DirectIndirect Market Exposure MiddlemenManagement Distribution Type Place Strategy

130. Transportation Cost Lost Sales Inventory Costs Total Costs Customer Service Level (%) Costs ($) Physical Distribution

131. C C C 1 2 3 4 5 6 7 8 9 (a) Number of contacts M x C = 3 x 3 = 9 1 2 3 4 5 6 (b) Number of contacts M + C = 3 + 3 = 6 M = ManufacturerC = CustomerD = Distributor D M M M C C C M M M Channel Efficiency and Intermediaries

132. 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 Add

133. –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 Summary

134. Marketer PublicPublic ConsumerConsumer CustomerCustomer Marketing Research Market Problems Target Market Market Opportunities Identification Definition Action Market Research

135. Quickly gain crucial market intelligence Act upon first-mover advantages Stay afloat in a fast-paced environment Reduce market research costs Many more… Benefits of Internet Market Research

136. Market Research Uses Who are my customers? Conjoint Analysis How to segment the market? What is the price elasticity? What is the price elasticity? What are the growth trends? Who are my competitors? What do they like? What do they like? When do they purchase? Marketing Research Opinion Research Competitive Analysis Buying-Habit Studies Environmental Studies Customer Identification Discrete Choice Modeling

137. 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

138. Values GOALS STRUCTURE CLIMATE ENVIRONMENT MarketplaceOther Teams Culture Competition Pressures ClarityCommitment Reward System Reporting Relationships Feedback System Behavior Norm Decision Making Competition Enthusiasm Stress Trust Involvement Flexibility CollaborationMission Philosophy Accountability ORGANIZATIONAL EFFECTIVENESS

139. Joseph Lewis Aguirre Design Experience

140. 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 Experience

141. Online Marketing www.godaddy.com http://smallbusiness.yahoo.com/merchant/ http://www.google.com/ads/ http://www.cj.com/ http://www.content.overture.com/d/