Check

Information products are commercial products that consist solely of data. example travelocity.com and.., Drivers of the internet economy, distance doesn’t matter in many types of communications and transactions, speed is of essence, people are the key assets in internet enterprises, growth in the network cause exponential increase in value, marketer can deal w/ the customers on a one to one basis, demand can be predicted with an greater accuracy

Dell: the concept of virtual integration essentially describes how we have integrated with our customers and partners as one enterprise. As opposed to trying to build all of this ourselves. Figuring out what we really do well and the partnering w/ the best in the business has made a huge impact on our success!

On the customer side; dell because of their close relationship w/ customer dell has access to information most companies in their industry don’t. Speed is very important for dell and its customers. They are involved in the building process of the computer so they feel like it’s their own unique computer.

Steps to Creating a virtual value chain:  1rst step is to provide visibility or translate all of the relevant information about all the activities in the value chain to all employees who need it. The second stage is call mirroring which is the ability to create information system that provide and the third step is enhance customer value with tool such as portal: large site with multiple services ranging from news to directories to searches that acts as an entry point onto the internet.

Zara’s success come form 2 key drivers: 1rst the fashion appeals; customer trend are constantly monitored. Stores employee using handhelds devices roams stores asking customers what they like and what they don’t like. The second driver is the ability of zara to apply chain allows them to produce and get the items in the stores in just 2 weeks, which enable zara to provide customers with up to date design.

Business model are important because it is the method of doing business by which a company can sustain itself, that is generate revenue. It spells how companies make money by, specifying where it is positioned in the value chain.

A business model has to articulate the value proposition: the value created for users by the offering based on technology. Identify the market segment, the people to whom the technology is important; define the structure of the value chain

Internet revenues have evolved from: advertisements revenue where the explosion growth of advertising on the internet. Nether less few sites can sustain themselves on advertising.

Sponsorship revenue: content on a web or an email site cab be sponsored providing another.

Membership or subscription revenue, sales or licensing of software or system. Sale or licensing of software or system.

Software based services; syndicated or licensing of content.

Transaction revenue

Ex: Syndication: sale of content to multiples customers each of whom then integrate it into their own products

Licensing: legal permission to own or use a product or piece of content…

Multi channel retailers such as eBay and Amazon are more likely to experience long term success because they have an open door to different market.

Customer lifetime value is the value net present value of a future stream of net revenue from an identified customer.

Testing is a timely and statistically valid manner is another advantage that direct marketing has traditionally held over mass media marketing. Direct marketers are able to track each response; they therefore know whether programs are performing satisfactorily.

The stages of internet consumer behavior are:

Awareness

Search behavior: goal oriented and entertainment/ experienced oriented.

Task Completion: content/information acquisition, purchase, abandonment

Repeat visit: occasional or frequent

Use/consumption behavior

Loyalty

Trackback URI | Comments RSS