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Slide 2.1
Chapter 2
Marketplace analysis for
e-commerce
Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
Slide 2.2
Learning outcomes
• Complete an online marketplace analysis to
assess competitor, customer and intermediary
use of digital technologies and media as part
of strategy development
• Identify the main business and marketplace
models for electronic communications and trading
• Evaluate the effectiveness of business and
revenue models for online businesses,
particularly online start-up businesses
Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
Slide 2.3
Management issues
• What are the implications of changes in
marketplace structures for how we trade with
customers and other partners?
• Which business models and revenue models
should we consider in order to exploit the
Internet?
• What will be the importance of online
intermediaries and marketplace hubs to our
business and what actions should we take to
partner these intermediaries?
Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
Slide 2.4
Figure 2.1
The environment in which digital business services are provided
Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
Slide 2.5
Activity – the e-commerce environment
• For each of the environment influences shown in
Figure 2.1, give examples of why it is important
to monitor and respond in an e-business context.
For example, the personalisation mentioned in
the text is part of why it is important to respond
to technological innovation.
Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
Slide 2.6
Environment constraints and
opportunities
• Customers – which services are they offering via
their website that your organisation could support
them in?
• Competitors – need to be benchmarked in order to
review the online services they are offering – do
they have a competitive advantage?
• Intermediaries – are new or existing intermediaries
offering products or services from your competitors
while you are not represented?
Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
Slide 2.7
Environment constraints and opportunities
(Continued)
• Suppliers – are suppliers offering different
methods of procurement to competitors that give
them a competitive advantage?
• Macro-environment
• Society – what is the ethical and moral
consensus on holding personal information?
• Country specific, international legal – what are
the local and global legal constraints, for
example, on holding personal information, or
taxation rules on sale of goods?
Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
Slide 2.8
Environment constraints and opportunities
(Continued)
• Country specific, international economic – what
are the economic constraints of operating within
a country or global constraints?
• Technology – what new technologies are
emerging by which to deliver online services
such as interactive digital TV and mobile
phone-based access?
Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
Slide 2.9
Figure 2.4
An online marketplace map
Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
Slide 2.10
Figure 2.5
Google Trends – useful for consumer interest in products
Source: http://www.google.com/trends/.
Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
Slide 2.11
B2B and B2C interactions between an organisation, its suppliers and its
customers
Figure 2.6
Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
Slide 2.12
B2B and B2C characteristics
Characteristic
B2C
B2B
Proportion of adopters with
access
Low to medium
High to very high
Complexity of buying
decisions
Relatively simple –
individual and influencers
More complex – buying
process involves users,
specifiers, buyers, etc.
Channel
Relatively simple – direct or
from retailer
More complex, direct or via
wholesaler, agent or
distributor
Purchasing characteristics
Low value, high volume or
high value, low volume.
May be high involvement
Similar volume/value. May
be high involvement.
Repeat orders (rebuys)
more common
Product characteristic
Often standardised items
Standardised items or
bespoke for sale
Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
Slide 2.13
Disintermediation of a consumer distribution channel showing (a) the
original situation, (b) disintermediation omitting the wholesaler, and
(c) disintermediation omitting both wholesaler and retailer
Figure 2.7
Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
Slide 2.14
Figure 2.8
From original situation (a) to disintermediation (b) and reintermediation (c)
Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
Slide 2.15
Counter-mediation
• Creation of a new intermediary
• Example:
–
–
–
–
B&Q www.diy.com
Opodo www.opodo.com
Boots www.wellbeing.com www.handbag.com
Ford, Daimler (www.covisint.com)
• Partnering with existing intermediary – Mortgage
broker Charcol and Freeserve.
Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
Slide 2.16
Example channel chain map for consumers selecting an estate agent to
sell their property
Figure 2.9
Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
Slide 2.17
Business model
Timmers (1999) defines a ‘business model’ as:
An architecture for product, service and information
flows, including a description of the various business
actors and their roles; and a description of the
potential benefits for the various business actors;
and a description of the sources of revenue.
Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
Slide 2.18
Figure 2.10
Business Model Canvas example
Source: Smart Insights. With permission.
Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
Slide 2.19
Figure 2.11
Alternative perspectives on business models
Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
Slide 2.20
Revenue models – publisher example
•
•
•
•
•
•
•
•
Subscription access to content
Pay per view content access
CPM display advertising
CPC advertising on site
Sponsorship of sections, content or widgets
Affiliate revenue (CPA or CPC)
Subscriber data for e-mail marketing
Access to customers for research purposes.
Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
Slide 2.21
Figure 2.12
Example
spreadshe
et for
calculatin
g a site
revenue
model
Note: Available
for download at
www.smartinsights
.com/conversionmodelspreadsheets/
Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
MINISTRY OF EDUCATION
IMAM ABDULRAHMAN BIN
FAISAL UNIVERSITY
COLLEGE OF COMPUTER SCIENCE
& INFORMATION TECHNOLOGY
وزارة التعليم
جامعة ا إلمام
عبدالرحمن بن فيصل
كلية علوم الحاسب
وتقنية المعلومات
[CIS 513: E-Business Strategy] (2017-18) – [Term1]
Assignment 1
Answer the following questions applying the knowledge learned from Chapter 2 –
Market-place Analysis for E-Commerce.
Q. Pick a company/business that you interact with in Saudi Arabia that has an online presence. For
this example, briefly explain the following points as discussed in the chapter.
a) Discuss its micro and macro environment and how they affect what products (good or
service) they sell locally. 2.5 Marks
b) Using figure 2.4 (online marketplace map) (in Chapter slides on slide 9) for reference and
describe the customer segments, intermediaries and sites that exist in its marketplace. 2.5
Marks
c) What do you believe is their current revenue model? And what other methods to you think
they can add to it? 2 Marks
Submission:
Both softcopy and hardcopy versions are required.
Due Date:
Online submission October 22, 2017 (midnight)
Print submission October 23, 2017 (12:00 PM)
This is an individual assignment