1 C7 - March 3, 2008 Business 54 - Introduction to eCommerce Spring 2008 C7 - March 3, 2008

2 Class Game Plan C7 - March 3, 2008  eMarketing II  eXchanges.

3 C7 - March 3, 2008 Business & Revenue Models Business Models  Business to Consumer.  Business to Business.  Business to Business to Consumer.  Consumer to Business.  Communities.  Exchanges-Marketplaces.  Governmental.  Peer to Peer.  Media. Revenue Models  Banner-Advertising.  Subscription.  Transactional.  ‘Begging’-Donations.  Middlemen.  Taxation.

4 C7 - March 3, 2008 eMarketing Guiding Principles  6 P’s of eMarketing: Product-What am I selling? Price / Price Discrimination -What am I charging? Placement-Where am I selling? Promotion-How do I make prospective buyers aware of my product? Personalization-What do I know about the Customer? Persistence-Who is the Customer?

5 C7 - March 3, 2008  Targeted Direct Marketing.  Web Circles.  Referral Programs.  Lead Generation. Promotion

6 C7 - March 3, 2008 Promotion / Web Circles  A Web Circle is Linked Loop of sites-businesses selling closely related products or services.  The Surfer / Customer is passed from one site to the next around the Loop.  Each site shares revenue based upon some prearranged formula, not their individual selling prices. Week Two

7 C7 - March 3, 2008 America West Avis Hyatt The Hartford Buying a trip from Phx to Chicago Individual Components = $1,010A/F $500 Hotel $350 Car $150 Trip Insurance$ 10 ‘Package Price’ = $750, split via prior agreement: Promotion / Web Circles

8 C7 - March 3, 2008 Promotion / Referral Programs  Fee for Introductions / Leads.  Possible future revenue share based upon customer future spend. America West Avis Hyatt The Hartford Visa AWA Logo’d credit card Ticket Buyer Lead Fee Upon Credit Card Approval Credit Card Application & Approval / Disapproval

9 C7 - March 3, 2008 Promotion / Affiliate Programs Avis  Empowering others to sell your product or service.  You earn either a: Service Fee. Commission. Revenue Split.  Travel Aggregators are a prime example.  Software-in-a-Box offerings are a frequent way to implement an affiliate program.  Hyperlinks are another common way to implement an affiliate program. America West Hyatt The Hartford Expedia

10 C7 - March 3, 2008  The Web allows you to both Narrowcast and Broadcast at the same time.  Narrowcasting: One-on-One marketing & selling. Targeted audience(s).  Broadcasting: Global Reach. Large Product-Services Set. Appear bigger than you really are.  Smaller, and ruthlessly focused can be better than being big.  Successfully identify a web niche and exploit it: Meet an Unsatisfied Need. Become a Niche Player-Company. Compete on Emotion-image-brand. Higher Profit Margins / ROI. More Satisfying / Less Pressure. Price Mass Market Gaining Strategic Advantage through Specialization

11 C7 - March 3, 2008  Three Waves of the Internet.  Information Gathering – Users were on their own.  Search Engines: Editorial / Algorithm / Paid.  Introductions aka Lead Generation.  The Next Wave?: Applying Web 2.0 to marketing. Back to Lead Generation

12 C7 - March 3, 2008 Introduction to eXchanges Vertical Distributors Vertical Distributors Horizontal E-Distributors Horizontal Distributors Strategic Sourcing Spot Sourcing DirectIndirect

13 C7 - March 3, 2008 Characteristics of eXchanges  Ownership / Controllers.  Dynamic Pricing.  Portals vs. Directories.  Buyer vs. Seller Aggregation.  Consortium.

14 C7 - March 3, C7 - March 3, 2008 Questions…… (and maybe some) Answers