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eBay Marketing Program

eBay Marketing Program. Natasha Bunch Andrea Pie Frank Roberts James Ruane Ben vonWurmb. Positioning Strategy. eBay Efforts : 1) providing great bargains/deals 2) giving 100% on improving auctioning service 3) providing quality service and products Combination of Strategies :

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eBay Marketing Program

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  1. eBay Marketing Program Natasha Bunch Andrea Pie Frank Roberts James Ruane Ben vonWurmb

  2. Positioning Strategy • eBay Efforts: • 1) providing great bargains/deals • 2) giving 100% on improving auctioning service • 3) providing quality service and products • Combination of Strategies: • Price/Quality Relationship • Reference to Competition

  3. Advertising & Promotion Checklist for Marketing Communications Planning • How • Who • What • Why • Where • When

  4. Advertising & PromotionWHO? • Target Market includes: • Anyone interested in service BUT • Power Sellers, Store Owners • Individuals looking for deals or to save $ • At least 20 eBay transactions OR $100 shipping costs per month • Mid 20’s to 40’s • Income btw. $35,000 and $100,000 • Access to UPS drop stations • Internet Users

  5. Advertising & PromotionWHAT? • Inform: eBay partnership with UPS for discounted shipping (HOW?) • Educate: (sellers) How to use new service • Added step in selling process • Added portion to seller page for buyers to see • Example Pages

  6. Listing Upgrade Listing Upgrade Fee Home Page Featured $99.95 (single quantity) or $199.95 (quantity of 2 or more) Featured Plus! $19.95 Highlight $5.00 Bold $1.00 Selling Process Listing Designer $0.10 Gallery $0.25 Gallery Featured $19.95 List in Two Categories Double the insertion and listing upgrades fees (excluding Scheduled Listings and Home Page Featured). 10-Day DurationThe longest listing duration available $0.10 Scheduled Listings $0.10 Buy It Now $0.05 • UPS Discount Rate FREE

  7. Seller Page

  8. Advertising & PromotionHOW? • Primary Target Market • Email to all members • Personalized notices to Power Sellers and store owners (Example) • Secondary Target (General Public) • Add into existing promotions • E.g., AOL, TV commercials, billboards, search engines, word of mouth. (Example)

  9. eBay Email eBay’s Partnership with UPS Start Saving on Shipping NOW!!!

  10. Advertising & PromotionHOW? • Primary Target Market • Email to all members • Personalized notices to Power Sellers and store owners • Secondary Target (General Public) • Add into existing promotions • E.g., AOL, TV commercials, billboards, search engines, word of mouth. (Example)

  11. Web Advertisement NEW AND CLICK HERE

  12. Advertising & PromotionWHERE? • Reach numerous geographic regions • Via email & internet ads • Specific cities/towns near UPS stations • Via TV commercials and/or billboards

  13. Advertising & PromotionWHEN? • Initially begin with United States • After measuring progress and success, expand

  14. Advertising & PromotionWHY? • Positioning Strategy • Provide great deals/bargains with quality service, while focusing solely on our auctioning site to continuously improve and perfect the eBay buying/selling community.

  15. Mutually Beneficial • eBay Inc. • New source of profit • Creates definitive shipping • UPS • Larger customer base • eBay users • Shipping discounts • Less confusion

  16. Financial Implications • eBay • Keeps 10% discount on shipping • UPS • Offers 20% discount based on guaranteed usage • Users • Realize 10% shipping discount • No possibility of overcharging

  17. Power Seller Levels

  18. Pricing Strategy • Value-based pricing • Uncertainty reduction • Relationship enhancement • Cost leadership

  19. Competitive Analysis Auction sites vary • Product categories • Whether they carry inventory • The bidding process • Extra-services/fees • Technical support • Functionality • Sense of community

  20. Strengths • Strong brand identity • eBay synonymous with online trading • Dominates the market • Easy to use • No inventory or costs associated with inventory

  21. Weaknesses • Shipping costs hinder online sales • eBay’s site is sometimes “down” • Expansion of services geared toward high volume sellers may be alienating the individual sellers

  22. Opportunities • Strategic alliances • Foster community affinity • Enhance features and functionality • Expand value-added services

  23. Threats • Competition • Direct – Ubid.com, Yahoo Auctions, Amazon.com Auctions • Indirect – Any online or offline retailer • Rising cost of technology • Loss of market share

  24. Distribution • eBay- Website available to anyone with internet access • UPS • 200 countries worldwide • World’s largest package delivery company • 4000 UPS Store/ Mail Box Etc. worldwide • Box drops can be found almost anywhere • Retail centers

  25. Service • Quick and easy way to save on shipping • Hotline for shipping problems • UPS- Known for quality service

  26. Marketing Budget

  27. Revenue

  28. Projected Number of Units

  29. Income Statement

  30. Income Statement

  31. Income Statement

  32. Income Statement

  33. Income Statement

  34. Contribution Margin Analysis

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