Interactive CommunicationsLinks to Direct Marketing and Future of E-commerce

Main Source (if not stated otherwise):Chaffey et al. 2003

Prentice Hall

Digital Tools for E-Communication

People With Access Digital Tools For E-Communication

Everyone Mobile Telephone (GSM)Voice mail on mobile / Text MessagingCards with bar code (eg entry cards etc.)Smart cards (e.g., credit cards, phone cards)

Most People Personal ComputerNet AccessE-mailFax

Fewer People WAP /GPRS / 3G / In-Car CommunicationPalm Pilot (hand help PC or Communicator) / LaptopInteractive / Digital TVVirtual reality on PCVideo mail / Video CommunicationReal audioOther multi-media on PC

Diagram adapted from Bishop (1998)

From One-to Many to One to Some & One-To-One

”Consumers can interact with the medium, firms can provide content to the medium, and in the most radical departure from traditional marketing environments,

consumers can provide commercially oriented content to the medium”

- Hoffman & Novak (1997).

From One-to Many to One to Some & One-To-One

From One-to Many to One to Some & One-To-One

”This potential has not yet been fully developed since many companies are still using the internet to provide standardized information to a general audience.

However, some companies provide personalised Internet-based services to key accounts” An example is Dell…..with its premier pages. Furthermore some

companies such as eBay…or Ubid…..are adopting the new paradigm by offering bespoke auction facilities”

- Chaffey et al. 2003, pg 313.

From One-to Many to One to Some & One-To-One

Consumers can also take part in Product Design Specification and Feedback on existing products

- Hoffman & Novak (1997).

From One-to Many to Many to Many Communications

Adapted from original presentation by:Cyril Piermé

Francisco JeronimoLeonard Njoroge

Maria Spartali (University of Vaasa)

COMPANY OVERVIEW

eBay (NASDAQ: EBAY; http://www.ebay.com) is the world's largest online marketplace.

Founded in September 1995, eBay is the leading online marketplace for the sale of goods and services by a diverse community of individuals and businesses. Today, the eBay community includes 42.4 million registered users, and is the most popular shopping site on the Internet when measured by total user minutes according to Media Metrix.

OUR MISSION

eBay's mission is to help practically anyone trade practically anything on earth.

OUR MARKETPLACE

On any given day, there are more than 12 million items listed on eBay across 18,000 categories. In a year, eBay members transact $14.87 billion in annualized gross merchandise sales (GMS, the value of goods sold on eBay).

People come to the eBay marketplace to buy and sell items across multiple categories, including antiques and art, books, business & industrial, cars & other vehicles, clothing & accessories, coins, collectibles, crafts, dolls & bears, electronics & computers, home furnishings, jewelry & watches, movies & DVDs, music, musical instruments, pottery & glass, real estate, sporting goods & memorabilia, stamps, tickets, toys & hobbies and travel.

Members from all over the world buy and sell on eBay. Currently, eBay has local sites that serve Australia, Austria, Belgium, Canada, France, Germany, Ireland, Italy, Korea, the Netherlands, New Zealand, Singapore, Spain, Sweden, Switzerland, Taiwan and the United Kingdom. In addition, eBay has a presence in Latin America and China through its investments in MercadoLibre.com and EachNet, respectively.

eBay offers a wide variety of features and services that enable members to buy and sell on the site quickly and conveniently. Buyers have the option to purchase items in auction-style format or items can be purchased at fixed price through a feature called Buy-It-Now. In addition, items at fixed price are also available Half.com, an eBay company.

eBay is dedicated to its community of members, and has numerous services which enhance the trading experience. Our marketplace services include: online payments by PayPal; wide array of Buyer and Seller tools; and Preferred Solution Provider programs.

Company Overview

What is eBay?

”We help people trade practically anything

on earth”

Products,Services

Company Overview

International

Special Sites

Other Contents

E-Com Model

1st Step : Registration

2nd Step : Interaction

3rd Step : Transaction

Seller Buyer

Registers

Bids on item

Checks Feedback

Wins Auction

Registers

Chooses ItemLists Item Checks Feedback

Exchange E-mails

ebay notifies Buyer &

Seller

Exchange Item for payment

Leave feedback foreach other

Pays ebay

Major services and features available on eBay include:

Billpoint Billpoint is eBay's preferred online bill payment service that facilitates credit card payment between buyers and sellers. With Wells Fargo Bank, Billpoint offers expedient and secure completion of each transaction. By giving sellers the convenience of credit card acceptance, and providing buyers the ease to pay more quickly than writing a check or filling out a money order, Billpoint is the best choice for a hassle-free and reliable online payment solution on eBay.

Half.com The eBay community benefits from a marketplace combining traditional auction-style trading and Half.com's fixed-price trading. Half.com offers an organized online marketplace to buy and sell high quality, previously owned mass-market goods. Unlike auctions, where the selling price is based on bidding, the seller sets a fixed price for items at Half.com at the time an item is listed.

eBay International Users on eBay represent countries all over the world. With eBay's vision and global business strategy, the company continues to expand its service and brand abroad. It is not uncommon to hear about eBay users in Japan buying items from users in the U.S., or users in Australia buying from others in France. Currently, eBay has country specific sites in Austria, Australia, Canada, France, Germany, Ireland, Italy, Japan, Korea, New Zealand, Switzerland and the UK.

eBay Motors eBay Motors is the Internet's largest auction-style marketplace for buying and selling all things automotive. At any given time, eBay Motors has a wide variety of vehicles listed for sale, from Acuras to Volvos and all makes and models in-between. The site also features collector cars, motorcycles, as well as auto parts. eBay Motors provides end-to-end online services such as financing, inspections, escrow, auto insurance, vehicle shipping, title & registration, and a lemon check.

eBay Stores eBay Stores expands the marketplace for sellers by allowing them to create customized shopping destinations to merchandise their items on eBay. For buyers, eBay Stores represents a convenient way to access sellers' goods and services. Buyers who shop at eBay Stores are able to make immediate and multiple-item purchases for fixed-price and auction-style items.

eBay Professional Services Professional Services on eBay serves the fast growing and fragmented small business marketplace by providing a destination on eBay to find professionals and freelancers for all kinds of business needs such as web design, accounting, writing, technical support, among others.

eBay Premier eBay Premier is a specialty site on eBay, which showcases fine art, antiques, fine wines and rare collectibles from leading auction houses and dealers from around the world. Through its "Premier Guarantee" program, all sellers on eBay Premier stand behind and guarantee the authenticity of their items.

eBay Live Auctions Live Auctions provides live, real-time online bidding on items being sold on the sales floor of the world's leading auction houses. A proprietary technology developed by eBay, Live Auctions empowers traditional auctioneers to extend their sales beyond the auction house floor and reach millions of potential buyers online. Buyers gain easy access to exclusive, high-end property with the convenience and comfort of bidding from their home or office.

Strategy

Strategic Directions Markets

Current New

Services

Current ConsolidationMarkets

Development

NewServices

DevelopmentRelated

Diversification

Short Term

Long Term

Mobile Model

• M-Commerce: Transfer of Technology

• Players:

• eBay Anywhere

• Strategic Partners:

• Mobile Competitors: Yahoo!Mobile & Amazon Anywhere

• Is M-Com Model Feasible? Yes

Competitor Analysis

SWOT Analysis

Oportunities - Mobile Commerce (LT)- Internet Usage (ST)

Threats- New Regulations (ST)- Fraudulent Activities (LT)

Strengths - Brand Recognition- Community Affinity

Weaknesses - Own growth- System failures

Oportunities

Weaknesses

Threads

Strengths

Risks (A)

Risks (B)

Sug (C)

Sug(D)

ST

LT

ST

LT

0

200,000

400,000

600,000

800,000

1997 1998 1999 2000 2001

eBay's Financial Data

Net Revenues Gross Profit Net income

in thousands

(a) company forecast

(a)

Results Overview

US Audience

0%

20%

40%

60%

80%

100%

Amazon eBay Yahoo!

eBay Registered User Growth (MM)

0

5

10

15

20

25

Dec-98 Dec-99 Dec-00

Results Overview

Results Overview

eBay Vs Freemarkets eBay Vs Freemarkets

Results Overview

eBay Vs NokiaeBay Vs Nokia

Clicking one… Clicking two… Clicking three… Sold!

Thank you !

From ‘Lean-Back’ to ‘Lean Forward’

”New media………are lean-forward media in which the web site usually has the visitor’s undivided attention. This intensity means that the customer wants to be in

control and wants to experience flow and responsiveness to their needs”

- Chaffey et al. 2003, pg 314.

Objectives for Interactive Marketing Communications

• Contact – promoting corporate image, publishing corporate information and offering contact information. Content

• Interact – embed information exchange. Communication

• Transact – online transactions and interaction with trading partners. Commerce

• Relate – two-way customer relationship. Community

According to Rowley (2001):

Objectives for Interactive Marketing Communications

O’Connor et. Al. (2004):

Targetted Mass

Field SalesTelephone

Direct MailLocal MarketingNewspapersTV / Radio

Internet

Tools For Promoting

Online Presence

Internet Advertizing

Practice

Purpose of Banner

Advertizing Work

Requirements for Banner Advertising

According to O’connor et. Al. 2004:

Creativity

Recognizing internet traffic concentrates around small number of destination sites:

- High-content sites- Search Engines- Portals that internet users use as their starting point

Requirements for Banner Advertising

Source: Target Online (2001),In O’Connor et. al. (2004)

Making Banner Advertizing

Work

Tools For Promoting

Online Presence

&SMS

Email Marketing

Source: Target Online (2001),In O’Connor et. al. (2004)

Email Marketing

According to O’connor et. al. 2004:

76% think direct mail is unethical

71% think sale of lists between companies is unethical

67% do not think direct communications provide information

47% consider direct marketing to be an invasion of privacy

But you use it, right?

Email Marketing

Eg. constantcontact.com

Internet for PR

Investor Relations

Product & Service Information

Press Releases

Recruitment

O’Connor et.al. 2004

Other Useful Web Sites

bcentral.com