1. Marketing 592 Dr. Gerald Klemushin Class#3: Sept 24, 2012 ERES password = ecommerce In the news: 1. Google ‘online free search class’ started today 2. Salesforce’s Dreamforce event highlights use Social Media Review more details of the 2 Team Projects-- Our 5 teams for Internet Mktg Projects Dates for Team Project #1 Presentations of a DotCom Topic 1: Target markets….. Topic 2: ec business models see last slide for homework…

2. In the news: Today - Sept 24 1. Google introduces a free online class www.powersearchingwithgoogle.com/course Class #1 today Sept 24:-a free online global course - techniques to be a better searcher -very clever videos with speaker overlay -short video, then lessons, then activities, tests And even a certificate if pass the tests --------------------------------- 2. See highlights of last week’s Salesforce’s Dreamforce event in SF– they use Social Media elements… blogs.salesforce.com/strategy/2011/09/dreamforce- highlights.html

3. Project Teams Researching & Practicing E-C & Internet Mktg TEAM 1 Andrea Joyce, Navya Ashok, Sakthi C Nikita Goel, Thalia Cheng TEAM 2 Rupa P, Shada D, Manpreet K, Harjeet K TEAM 3 David N, David V, Taryn W, Jeorge S TEAM 4 Bhavani Y, Sridhar S, Sarika P, Sanjay K TEAM 5 Ajay Chand, Dyana Mathis, Al Muthuraman Shibani Taneja

4. Team Project #1: Research & Present an interesting dotcom …a 10 minute ‘brief’ Candidates: fab, groupon, etsy, threadless, gilt, …… yelp, kickstarter, dropbox, mint, …… What is interesting about the company? What is their target market, their business model, which of their target markets supplies the revenues? How do they reach their target customers? Their use of web 2.0 elements. Any data on their key financials, # of users,# of people, revenue, growth How the site is used. Put some “ wow ’ into your presentation! Next step: Team captain sends Dr K an email with their candidate for dotcom brief –explain what’s unique or interesting about the dotcom… See Preso dates on next slide…

5. Team Project #1 Dates for ‘briefs’— Do some Research and Present ‘a 10-minute brief’ on an interesting dotcom TEAM 1 Oct 1: Andrea Joyce, Navya Ashok, Sakthi C, Nikita Goel, Thalia Cheng TEAM 2 Oct 3: Rupa P, Shada D, Manpreet K, Harjeet K TEAM 3 OCT 10: David N, David V, Taryn W, Jeorge S TEAM 4 OCT 15: Bhavani Y, Sridhar S, Sarika P, Sanjay K TEAM 5 OCT 24: Ajay Chand, Dyana Mathis, Al Muthuraman, Shibani Taneja

6. Team Project #2—Working with a local small biz to ‘Improve’ their website & experiment with Internet Marketing Campaign methods Challenge #1 : Creating a list of 8-10 small biz candidates for your team project --identify companies that need help & want help with a more effective website and using the new Internet mktg tools Current capabilities that improve success: -have a facebook business page -have 50-100+ email addresses

7. Good examples of local small businesses that were used by previous classes Rengstorff House woodenhorsetoys.com Testarosa Winery BookRenter.com DiverDans Calmar Bicycles --See eres for small biz that have already been used by previous ec mktg classes will be posted on eres

8. Team Project Tips– who is your team captain? fill your ‘ funnel ’ with 10 small biz candidates document your activities & progress Improve the small biz website for e-commerce Execute Internet mktg campaigns-google, facebook, email Create recommendations & Mktg Plan plan for the next 3 months Examples from Dr K ’ s walking around: √ Hotline wetsuits Santa Cruz website: Hotlineonline.com √ Black Diamond Sports Palo Alto Roller Blades, Long Boards, Store Manager: student from Dr K ’ s Ec Mktg class √ advantages if a ‘product-based’ small biz for this Mktg project

9. Target Market = the focus for marketing Examples: 1. Nutrisystem 2. Nieman-Marcus 3. Chipotle 4. Microsoft—visit their corporate homepage

10. Target Markets—the focus for mktg the Small Business Market : > 25 million in USA -less than $5m/year and less than 10 employees Co’s with 1-25 employees.. or companies with < $5 in sales. 1. Small Businesses as a generic market ex: Intuit markets “ QuickBooks ” acctg software to all small biz 2. Segment into “ Vertical Segments ” and prioritize mktg on just a few that meet a criteria. Ex: our small biz hw 3. Other Segmentation; --by number of employees: < 5, 5-15, < 50 --by ownership: example Women-Owned-Businesses, - by geographic location Why do segmentation? Because marketing effectiveness is all about focus & a better understanding of a target market!

11. Target Market: Doing market segmentation Segment using Demographics: age, sex, family size, income…. and then segment more using 'psychographics' Lifestyle: conservative, exciting, trendy, economical Social class: lower, middle, upper Opinion: easily led or opinionated Activities and interests: sports, physical fitness, shopping, books Attitudes and beliefs: environmentalist, security conscious.

12. Target Market segmentation : Market research is a must - always a Golden Nugget from Mkt research! Business/Marketing people should be able be able to write a detailed description of their target customer. Example target market description: "My target customer is a middle-class woman in her 30s or 40s who is married and has children, and is environmentally conscious and physically fit.” Dr K’s market research for IBM’s home page creator product…identified Golden Nuggets next slide

13. Examples of Target Market segmentation Dr K ’ s small biz segment study for IBM Goal of the market research: Identify the 5 best small biz segments for IBM ’ s initial launch of a new web-site builder: called Home Page Creator interesting finding for Women-Owned small businesses -the market research found they were not a good candidate for version 1 of Homepage Creator. Why not? We call this ‘surprise discovery’ a Golden Nugget

14. A Framework for Market Segmentation: Volume-- how many potential customers? Need--- the test: does the product or service eliminate a major “ pain? ” or is it just an aspirin? Economics - price they will pay, affordability Whole product - completeness for their use -or is something missing to meet their needs? Channel -- best ways to reach these customers Positioning - what messages will cause the prospect to act today Perform Market Research to estimate these characteristics for each segment being considered for selling/marketing:

15. Portals--definition: “ Destination websites ” Yahoo, AOL, and MSN are defined portals with Google showing almost all the services of a portal. 1. Search services 2. Email services 3. News, information, and entertainment services(maps, etc) 4. Online stock values(delayed 25-20 minutes for free data) 5. Shopping services ------------- 6. Many other services(photo, dating,….) Business models are dominated by Advertising, But portals are now moving to other ways to bring in revenues!

16. Homework – 2 slides: #1-Research into small biz candidates for team project!! #2 Read Chapters #1 and #2: Intro to E-Commerce & EC Business Models -read page 61.Tweet Tweet-What’s your business model? -read pages 76-78 The Big Portals -read page 743-745 The transformation of AOL