ebay marketing program
DESCRIPTION
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 : - PowerPoint PPT PresentationTRANSCRIPT
eBay Marketing eBay Marketing ProgramProgram
Natasha BunchNatasha Bunch
Andrea PieAndrea Pie
Frank RobertsFrank Roberts
James RuaneJames Ruane
Ben vonWurmbBen vonWurmb
Positioning StrategyPositioning Strategy
eBay EffortseBay Efforts::– 1) providing great bargains/deals1) providing great bargains/deals– 2) giving 100% on improving 2) giving 100% on improving
auctioning serviceauctioning service– 3) providing quality service and 3) providing quality service and
productsproducts Combination of StrategiesCombination of Strategies::
– Price/Quality RelationshipPrice/Quality Relationship– Reference to CompetitionReference to Competition
Advertising & Advertising & PromotionPromotion
Checklist for Marketing Communications Checklist for Marketing Communications PlanningPlanning Who
What
How
When
Where Why
Advertising & Advertising & PromotionPromotionWHO?WHO? Target Market includesTarget Market includes::
– Anyone interested in service BUT Anyone interested in service BUT – Power Sellers, Store OwnersPower Sellers, Store Owners– Individuals looking for deals or to save $Individuals looking for deals or to save $– At least 20 eBay transactions OR $100 At least 20 eBay transactions OR $100
shipping costs per monthshipping costs per month– Mid 20’s to 40’s Mid 20’s to 40’s – Income btw. $35,000 and $100,000Income btw. $35,000 and $100,000– Access to UPS drop stationsAccess to UPS drop stations– Internet UsersInternet Users
Advertising & Advertising & PromotionPromotionWHAT?WHAT? InformInform: eBay partnership with UPS for : eBay partnership with UPS for
discounted shipping (HOW?)discounted shipping (HOW?)
EducateEducate: (sellers) How to use new service: (sellers) How to use new service– Added step in selling processAdded step in selling process– Added portion to seller page for buyers to seeAdded portion to seller page for buyers to see
Example PagesExample Pages
As a seller, you can choose several optional features to help promote your listing. Please note that these fees are non-refundable.
FREEUPS Discount Rate
$0.05Buy It Now
$0.10Scheduled Listings
$0.1010-Day DurationThe longest listing duration available
Double the insertion and listing upgrades fees (excluding Scheduled Listings and Home Page Featured).
List in Two Categories
$19.95Gallery Featured
$0.25Gallery
$0.10Listing Designer
$1.00Bold
$5.00Highlight
$19.95Featured Plus!
$99.95 (single quantity) or $199.95 (quantity of 2 or more)
Home Page Featured
Listing Upgrade FeeListing Upgrade
Selling Process
Payment Details
United States Shipping and handling, Original: ($45.00) US $40.50
UPS discount (U.S. Shipping only) You save 10% $4.50!
Payment Instructions
You can pay with Paypal or MO and is expected within 4 days. Items are shipped the day after payment is recieved. Positive feedback is left for all completed transactions. Thank You and have a Great Day!
Bidding
Sony Stereo Amplifier for Car (New)! Item # 3019201240
Bid Buy
Starting bid: US $100.00
Your maximum bid:
( Minimum bid: US $100.00 )
Place Bid
You will confirm on the next page eBay will bid incrementally on your behalf up to your maximum bid, which is kept secret from other eBay users. The eBay term for this is proxy bidding.
Buy It Now for US $250.00
Buy It Now
Buy It Now ends this listing. This option disappears once a bid is placed. Learn more
Your bid is a contract - Place a bid only if you're serious about buying the item. If you are the winning bidder, you will enter into a legally binding contract to purchase the item from the seller. Seller assumes all responsibility for listing this item. You should contact the seller to resolve any questions before bidding. Auction currency is U.S. dollars ( US $ ) unless otherwise noted.
How to Bid
1. Register to bid - if you haven't already. It's free!
2. Learn about this seller - read feedback comments left by others.
3. Know the details - read the item description and payment & shipping terms closely.
4. If you have questions - contact the seller ceflowk before you bid.
5. Place your bid!
eBay purchases are covered by the Fraud Protection Program.
Need help?
Buyers: Bidding and buying tips
Sellers: Manage your listing
Seller Page
Advertising & Advertising & PromotionPromotionHOW?HOW? Primary Target MarketPrimary Target Market
– Email to all membersEmail to all members– Personalized notices to Power Sellers Personalized notices to Power Sellers
and store owners (Example)and store owners (Example) Secondary Target (General Public)Secondary Target (General Public)
– Add into existing promotionsAdd into existing promotions– E.g., AOL, TV commercials, billboards, E.g., AOL, TV commercials, billboards,
search engines, word of mouth. search engines, word of mouth. (Example)(Example)
eBay’s Partnership with UPS
Start Saving on Shipping NOW!!!
From "eBay" <[email protected]>
Date Wednesday, April 16, 2003 2:06pm
Subject Spring back into action
eBay Email
Advertising & Advertising & PromotionPromotionHOW?HOW? Primary Target MarketPrimary Target Market
– Email to all membersEmail to all members– Personalized notices to Power Sellers Personalized notices to Power Sellers
and store ownersand store owners Secondary Target (General Public)Secondary Target (General Public)
– Add into existing promotionsAdd into existing promotions– E.g., AOL, TV commercials, E.g., AOL, TV commercials,
billboards, search engines, word of billboards, search engines, word of mouth. (Example)mouth. (Example)
ANDNEW
CLICK HERE
Web Advertisement
Advertising & Advertising & PromotionPromotionWHERE?WHERE? Reach numerous geographic regionsReach numerous geographic regions
– Via email & internet adsVia email & internet ads
Specific cities/towns near UPS stationsSpecific cities/towns near UPS stations– Via TV commercials and/or billboardsVia TV commercials and/or billboards
Advertising & Advertising & PromotionPromotionWHEN?WHEN? Initially begin with United StatesInitially begin with United States
After measuring progress and After measuring progress and success, expandsuccess, expand
Advertising & Advertising & PromotionPromotionWHY?WHY? Positioning StrategyPositioning Strategy
– Provide great deals/bargains with Provide great deals/bargains with quality service, while focusing solely quality service, while focusing solely on our auctioning site to on our auctioning site to continuously improve and perfect continuously improve and perfect the eBay buying/selling community. the eBay buying/selling community.
Mutually BeneficialMutually Beneficial
eBay Inc.eBay Inc.– New source of profitNew source of profit– Creates definitive shipping Creates definitive shipping
UPSUPS– Larger customer baseLarger customer base
eBay userseBay users– Shipping discountsShipping discounts– Less confusionLess confusion
Financial ImplicationsFinancial Implications
eBayeBay– Keeps 10% discount on shipping Keeps 10% discount on shipping
UPSUPS– Offers 20% discount based on Offers 20% discount based on
guaranteed usageguaranteed usage UsersUsers
– Realize 10% shipping discountRealize 10% shipping discount– No possibility of overchargingNo possibility of overcharging
Power Seller LevelsPower Seller Levels
Power Power LevelLevel
Monthly Monthly Sales ($)Sales ($)
Shipping Shipping Discount Discount (%)(%)
BronzeBronze 1,0001,000 1111
SilverSilver 3,0003,000 1212
GoldGold 10,00010,000 1313
PlatinumPlatinum 25,00025,000 1414
TitaniumTitanium 150,000150,000 1515
Pricing StrategyPricing Strategy
Value-based Value-based pricingpricing– Uncertainty Uncertainty
reductionreduction– Relationship Relationship
enhancementenhancement– Cost leadershipCost leadership
Competitive AnalysisCompetitive Analysis
Auction sites varyAuction sites vary Product categoriesProduct categories Whether they carry inventoryWhether they carry inventory The bidding processThe bidding process Extra-services/feesExtra-services/fees Technical supportTechnical support FunctionalityFunctionality Sense of communitySense of community
StrengthsStrengths
Strong brand identityStrong brand identity eBay synonymous with online eBay synonymous with online
tradingtrading Dominates the marketDominates the market Easy to useEasy to use No inventory or costs associated No inventory or costs associated
with inventorywith inventory
WeaknessesWeaknesses
Shipping costs hinder online salesShipping costs hinder online sales eBay’s site is sometimes “down”eBay’s site is sometimes “down” Expansion of services geared Expansion of services geared
toward high volume sellers may toward high volume sellers may be alienating the individual sellersbe alienating the individual sellers
OpportunitiesOpportunities
Strategic alliancesStrategic alliances Foster community affinityFoster community affinity Enhance features and Enhance features and
functionalityfunctionality Expand value-added servicesExpand value-added services
ThreatsThreats
CompetitionCompetitiono Direct – Ubid.com, Yahoo Auctions, Direct – Ubid.com, Yahoo Auctions,
Amazon.com AuctionsAmazon.com Auctionso Indirect – Any online or offline Indirect – Any online or offline
retailerretailer Rising cost of technologyRising cost of technology Loss of market shareLoss of market share
DistributionDistribution
eBay- Website available to anyone eBay- Website available to anyone with internet accesswith internet access
UPSUPS– 200 countries worldwide200 countries worldwide– World’s largest package delivery World’s largest package delivery
companycompany– 4000 UPS Store/ Mail Box Etc. worldwide4000 UPS Store/ Mail Box Etc. worldwide– Box drops can be found almost anywhereBox drops can be found almost anywhere– Retail centers Retail centers
ServiceService
Quick and easy way to save on Quick and easy way to save on shippingshipping
Hotline for shipping problemsHotline for shipping problems UPS- Known for quality serviceUPS- Known for quality service
Marketing BudgetMarketing Budget
20032003 20042004 20052005 20062006 20072007
BillboarBillboardsds
$10,200,0$10,200,00000
$10,200,0$10,200,00000
$20,400,0$20,400,00000
$20,400,0$20,400,00000
$20,400,0$20,400,00000
TelevisiTelevisionon
$7,500,00$7,500,0000
$7,500,00$7,500,0000
$11,800,0$11,800,00000
$11,800,0$11,800,00000
$11,800,0$11,800,00000
InternetInternet$6,187,50$6,187,50
00$6,187,50$6,187,50
00$9,281,25$9,281,25
00$9,281,25$9,281,25
00$9,281,25$9,281,25
00
TotalTotal$23,887,$23,887,
500500$23,887,$23,887,
500500$41,481,$41,481,
250250$41,481,$41,481,
250250$41,481,$41,481,
250250
RevenueRevenue
Average shipping costAverage shipping cost $4.11$4.11
Average percentage kept Average percentage kept by eBayby eBay 8%8%
Average amount made by Average amount made by eBay per transactioneBay per transaction $0.329$0.329
Projected Number of Projected Number of UnitsUnits
2003 2004 2005 2006 2007
Projected # of eBay transactions 565,800,000 712,600,000 859,300,000 1,006,100,000 1,152,800,000
Projected percent using UPS rate 25% 40% 60% 65% 68.8%
Projected # using UPS rate 141,450,000 285,040,000 515,580,000 653,965,000 793,126,400
Income StatementIncome Statement
20032003
Net RevenueNet Revenue $46,508,760$46,508,760
ExpensesExpenses
Product DevelopmentProduct Development $3,400,000$3,400,000
Web MaintenanceWeb Maintenance $4,526,400$4,526,400
MarketingMarketing $23,887,500$23,887,500
Taxes (35%)Taxes (35%) $5,143,201$5,143,201
Total ExpensesTotal Expenses $36,957,101$36,957,101
NET INCOMENET INCOME $9,551,659$9,551,659
Income StatementIncome Statement
20042004
Net RevenueNet Revenue $93,721,152$93,721,152
ExpensesExpenses
Product DevelopmentProduct Development $1,500,000$1,500,000
Web MaintenanceWeb Maintenance $9.121.280$9.121.280
MarketingMarketing $23,887,500$23,887,500
Taxes (35%)Taxes (35%) $20,724,330$20,724,330
Total ExpensesTotal Expenses $55,233,110$55,233,110
NET INCOMENET INCOME $38,488,042$38,488,042
Income StatementIncome Statement
20052005
Net RevenueNet Revenue $169,522,704$169,522,704
ExpensesExpenses
Product DevelopmentProduct Development $3,400,000$3,400,000
Web MaintenanceWeb Maintenance $16,498,560$16,498,560
MarketingMarketing $41,481,250$41,481,250
Taxes (35%)Taxes (35%) $37,850,013$37,850,013
Total ExpensesTotal Expenses $99,229,823$99,229,823
NET INCOMENET INCOME $70,292,881$70,292,881
Income StatementIncome Statement
20062006
Net RevenueNet Revenue $215,023,692$215,023,692
ExpensesExpenses
Product DevelopmentProduct Development $2,000,000$2,000,000
Web MaintenanceWeb Maintenance $20,926,880$20,926,880
MarketingMarketing $41,481,250$41,481,250
Taxes (35%)Taxes (35%) $52,715,447$52,715,447
Total ExpensesTotal Expenses $117,123,577$117,123,577
NET INCOMENET INCOME $97,900,115$97,900,115
Income StatementIncome Statement
20072007
Net RevenueNet Revenue $260,779,960$260,779,960
ExpensesExpenses
Product DevelopmentProduct Development $2,000,000$2,000,000
Web MaintenanceWeb Maintenance $25,380,045$25,380,045
MarketingMarketing $41,481,250$41,481,250
Taxes (35%)Taxes (35%) $67,171,533$67,171,533
Total ExpensesTotal Expenses $136,032,828$136,032,828
NET INCOMENET INCOME$124,747,13$124,747,13
33
Contribution Margin Contribution Margin AnalysisAnalysis
2003 2004 2005 2006 2007
Revenue $46,508,760 $93,721,152 $169,522,704 $215,023,692 $260,779,960
Variable Costs $4,526,400 $9,121,280 $16,498,560 $20,926,880 $25,380,045
Contribution Margin $41,982,360 $84,599,872 $153,024,144 $194,096,812 $235,399,916
Contribution Margin Percentage 90.27% 90.27% 90.27% 90.27% 90.27%