1 / 22

FINAL LECTURE

FINAL LECTURE. Wrap up B2BX Review Relationship/service/fulfillment Course Review Future of the Internet. B2BX SUMMARY. Why Most Fail: Not Consider Relationship/Trust Long Term Contracts Dominate Problem is eProcurement/Partners -- PVN 3rd Party Fail Unless Wider CBP

amal-hyde
Download Presentation

FINAL LECTURE

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. FINAL LECTURE • Wrap up B2BX • Review Relationship/service/fulfillment • Course Review • Future of the Internet

  2. B2BX SUMMARY • Why Most Fail: • Not Consider Relationship/Trust • Long Term Contracts Dominate • Problem is eProcurement/Partners -- PVN • 3rd Party Fail Unless Wider CBP • Manufacturer Power -- Consortia or In House • Not Able to Run with the Big Dogs -- Telcos, Manufacturers, Oracle/IBM • Lesson • Talk to Customers • Refine Understanding of Need and Relationships • CBP Not Only Technology

  3. Relationship • Life Time Value • Trust -- confidence -- relationship • CRM -- multichannel communication • Segment -- focus to build depth • Permissive Marketing -- promotion and price for loyalty • Channel -- Service Function • Evaluation -- Loyalty measures

  4. SERVICE/FULFILLMENT • Critical element in satisfaction/relationship • Internet Can Help • Tracking -- FedEX • Dell -- same file as 800 and service • Xerox/Sun -- self service • eService -- priority, track, resolve, evaluate • Channel Partner Software • Link TQM to Internet • Continuing Innovation -- product design

  5. Understanding Customers Consumer Behavior B2C vs B2B Strategy Formulation Trust vs. Push Product Design Segmentation Positioning Customer Acquisition Advertising / PR / Selling Pricing & Promotion Distribution Channel Logistics Relationship Building Fulfillment Service

  6. CONSUMER BEHAVIOR • Concept/Theory • Information Processing • Behavioral Theory • Tool • Flow Chart • Steps, Information, Decision Rules, Actions, Post Purchase • Decision Unit, Multiple Participants • Action • Design site for Conversion and Retention • Case • Mother Nature: Acquisition and Retention • Dell: Conversion • Marketsoft: Sell to Pain

  7. Questions to Ask • What starts process? • Role of past experience? • Friends make input? • Source of input. • ADS/catalogs/email? INITIATION • Sources of information; Friends / media / web/ store? • Active search? How much time? • Where shop – store / catalog / internet? • What learn? Products / technology / user experience / trends? AWARE/LEARN • Compare products? • Role of price / quality – evaluation criteria • Need to touch and feel? • Impact of brand and trust? DECIDE • Special offers • Guarantees / refund policies? • How do buyers gain confidence? • Security / privacy assurance needed? • Need push to action – close sale BUY • Word of month to friend/community • Relationship contract • Life time service? • Delivers promised value POST PURCHASE

  8. TRUST • Concept/Theory • Psychology • Trust Cues and Perception • Tool -Virtual Advisor • Trust Cues • Actions • Decide on Push -- Trust Dimension • Design in Trust -- Currency of the Internet • Real or Virtual Advisors • Alternative Methodologies • Case • InSite: Advisor • Dell: Recommend / Learning

  9. Push Commodity Price most important Deal prone segment Need short term results Full Trust Have best product Have good design feedback Buyers getting info anyway (infomediaries) Trust key element Expensive/complex products Culture to sell our products only Strong channel attitudes Evolutionary stop Have both price and relationship segments How much trust should you have in your eBusiness strategy?

  10. PRODUCT DESIGN • Concept/Theory • Build Process • Tool • Models / Market Research • Information Acceleration • Listen In • Actions • Prevent Failure • Do Research and Budget • Hire Modeling Capability • Case • Market Soft: eLeads and eOffers – suite • Prime Response: Depth - Breadth

  11. SEGMENTATION • Concept/Theory • Taxonomy • Segment for Competitive Advantage • Tool • Clustering • Demographic, Psychographic, Product • Data Mining • Action • Decide Basis of Segmentation • Use Data and Analytic Services • Personalize • Case • Mother Nature: Lifestyle – Data Mining • Dell: Sophisticated Buyers • MarketSoft: Marketing Manager • Prime Response: Vertical Markets • Terra Lycos

  12. POSITIONING • Concept/Theory • Psychology • Perception Simplicity • Tool • Perceptual Map • Needs Seen by Customers • Preference Vectors • Action Do Maps • Find Competitive Value Added • Do Vectors and Benefit Segmentation • Be First in But Position in Best Spot • Case • InSite: Advisor • Market Soft: Suite • Prime Response: Campaign Management versus New Competition • Terra Lycos

  13. ADVERTISING • Concept • Psychology • Communication • Tool • Copy Evaluation Framework • Action • Advertising Goals • Multichannel -- Sales/PR/Telemarketing • Case • SemiSales • Mother Nature -- Acquisition • Dell -- Catalog (separate URL)

  14. Extremely Bad Extremely Good

  15. PRICE AND CHANNELS • Concept • Economic Theory • Logistics • Tool • Avoid Price War by Differentiation and Segmentation • Channel Function Map • Action • Consider Incentive Site • Manufacturer Direct as Complement • B2BX lessons • Case • Terra/Lycos • SemiSales/ANX/Logistics.com • Mother Nature and Kozmo price to profit

  16. SMALL ELECTRONICS (I, IV, S) WHOLESALE (I, PD, IV) DISTRIBUTOR (I, PD, IV) MACS MERCHANDISE (I, IV, S) PALM (S) CUSTOMER eCOM SITES (I,S) BIG CHAINS (PD, I, IV, S) PALM.COM

  17. RELATIONSHIP • Concept • Psychology • Customer Satisfaction • Tool • Trust Based Marketing • CRM • Action • DO IT -- obvious • Trust/Franchise/Long Run • Service/Fulfill -- TQM • Case • Mother Nature -- Life Time Value • Dell -- Premier Pages/Repeat -- E2E • InSite -- Advisor builds relationship • Prime Response -- Communicate • B2BX -- all about Relationships

  18. FAILED ASSUMPTIONS • People will Flock to the Internet to Buy • Self Service Sites are Enough for Conversion • The Internet Technology will Create a New Economy • B2BX Have to Work Because Can Match Information • Must Be First -- Claim High Ground • Worry About Business Model Later • Frictionless Prices -- Price Competition and Comparators • Established Companies are Not Innovative • VC Capital Will Keep Coming • Need Young New Thinking Tech Management • Buzz and PR are the Key to Success • Must Set Up Internet as Separate Company • Internet will Replace Existing Channels

  19. LESSONS FROM FAILURES • Must have Strong CBP to Attract and Communicate It • Design Site to Support and Complete Decision Process • Internet will Improve Exisiting Economy • B2BX is relationships -- Talk to Customer • Be Right and First • Start with Business Model and CBP • Differentiate and Segment for Success • When the Dinosaurs Dance the Grass gets Crushed • VC Fads Come and Go -- Bubbles Burst • Must Know Fundamentals of Management • Focus and Fulfill Promises to Customers and Investors • Structural Integration is Key to Success • Multichannel Marketing will dominate

  20. FUTURE • Bright • Solid growth B2C, B2B, Infrastructure • Drivers -- life cycle adoption, global, technology, trust • Existing Players • Manufactures • Click and Mortar • Survivors Figure out ROI • Multichannel • Communication -- customer experience • Distribution • Innovation Opportunities • Start ups (VC will be back) • Existing Players • Fundamental Management Skill

  21. BUILDING A NEW INTERNET STRATEGY • NEED RECOGNITION • Introspection • Customer Focus • Customer Response • Decision Process • TECHNOLOGY DEVELOPMENT • Transfer in • Internet Capability • COME BENEFIT PROPOSITION • Trust vs. Push • Segment • Product Design

  22. BUILDING A NEW INTERNET STRATEGY (cont’d) • PROFIT ABILITY – BUSINESS MODEL • Venture Capital (internal / external) • Customer Acquisition / Retention • Advertising / PR / Selling • Logistics / Channel • Pricing • BUILD RELATIONSHIP • Trust • Service • Fulfillment INNOVATE

More Related