What role does database technology play in Zappos.com’s out an e-mail or Tweet, customers listen. Its strength in direct
2. What role does database technology play in Zappos.com’s out an e-mail or Tweet, customers listen. Its strength in direct
ability to connect with its customers? marketing, combined with user-friendly Web design, have made
3. Discuss Zappos.com’s Web site in terms of effective Web Zappos one of the strongest retailers anywhere.
design. What are its strengths and weaknesses?
COMPANY Case
EBay: Fixing an Online method with a fixed-price, “Buy It Now” option. Two years later,
it took that concept further with the introduction of eBay stores.
Marketing Pioneer
With eBay stores, a seller could create an online “storefront” within eBay. The feature allowed sellers to post items more quickly,
Pop quiz: Name the high-tech company that got its start in some- making it easier for high volume sellers to do business. It also gave one’s living room, grew from zero revenue to a multibillion dollar
fixed-price options with no bidding whatsoever and virtually elim- corporation in less than a decade, and pioneered the model for an
inated the sales period for an item.
entire industry to follow. If you’re thinking that the companies that Both of these dynamics continued to fuel eBay’s steady, strong fit this description make a list that is a mile long, you’re right. But
growth for years. In 2006, $52.5 billion worth of goods were sold in this case, we’re talking about eBay.
on eBay. Those sales were generated by 222 million users posting EBay is one of the biggest Web success stories in the history of,
610 million new listings. EBay’s take was $5.97 billion in revenue well, the World Wide Web. But sooner or later, every high-growth
and $1.12 billion in net income. These numbers were tremendous company hits a speed bump and experiences growing pains. Af-
for a company that had been doing business only for a single ter amazing growth for its first 15 years, eBay has hit that speed
decade; they also marked a zenith for the company. bump. Current CEO John Donahoe is faced with the difficult chal-
lenge of putting eBay back on the superhighway to prosperity.
A NEW DIRECTION
EBay started in 1995 as an auction house. Unlike most dot- In 2007, eBay began to show signs of slowing down. In early coms, eBay was based on a model that produced profits, not just
2008, John Donahoe took over as CEO, replacing Meg Whitman, revenue. Whenever a user posted an item for auction, eBay col-
the mastermind behind the company’s success for 10 of its 13 years. lected a fee. The more products that went up for auction, the
Donahoe acknowledged that eBay faced issues, including the fact more money eBay made. EBay has tinkered with its fee structure
that it had been resting on its laurels. “We were the biggest and over the years. But the basic idea has remained the same. The
the best. EBay has a storied past. But frankly, it’s a past we’ve held online auction formula took off like wildfire, and eBay dominated
onto too much.” Consumer behavior was shifting. When eBay the industry. EBay’s revenue, stock price, profits, and number of
was new, many users were thrilled by the uncertainty of bidding employees soared. By the year 2000, eBay was the number one
against other buyers for a bargain. But as online shopping went e-commerce site in the world by sales revenue.
mainstream, more people opted for the tried-and-true method of finding the best price on a new piece of merchandise and buying
THE CHANGING FACE
it from a reputable retailer.
The consumer shift to buying new products at fixed prices was With explosive growth, change was inevitable. According to many
OF A GROWING COMPANY
evident in the growth experienced by online retailers such as industry observers, the face of eBay slowly began to change based
Amazon.com, Buy.com, and Walmart.com, companies that eBay on two dynamics. The first was expansion. EBay’s list of categories
had previously refused to recognize as competitors. Amazon and subcategories grew into the hundreds. The e-commerce giant
passed eBay as the largest online retailer a number of years earlier also added international sites for different countries. And it began
by continuing to expand its selection of fixed-price items, often to launch subsites (such as eBay Motors) and acquire other dot
with free shipping.
.coms relevant to its business. Such acquisitions ultimately in- Shortly after taking over from Whitman, Donahoe said at a cluded Half.com, PayPal, StubHub, Shopping.com, and Skype.
public event, “We need to redo our playbook, we need to redo it The second dynamic driving change in eBay was the addition
fast, and we need to take bold actions.” He unveiled the details of fixed-price selling options. During its early years, open auction
of a new strategy for eBay’s turnaround. The strategy focused on was the only option buyers and sellers had. Sellers put up an item for
changing the identity of the eBay marketplace. Donahoe specified sale with a designated starting price for a period of one to 10 days
that the new strategy would focus on building the site’s business and sold to the highest bidder. In 1999, eBay augmented that core
in the secondary market, the $500-billion-a-year slice of retail that
Parts
» | Marketing: Creating and Capturing Customer Value 3
» | Marketing: Creating and Capturing Customer Value 11
» | Marketing: Creating and Capturing Customer Value 13
» | Marketing: Creating and Capturing Customer Value 25
» | Marketing: Creating and Capturing Customer Value 29
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 37
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 41
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 43
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 51
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 55
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 57
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 63
» | Analyzing the Marketing Environment 65
» | Analyzing the Marketing Environment 71
» | Analyzing the Marketing Environment 73
» | Analyzing the Marketing Environment 77
» | Analyzing the Marketing Environment 79
» | Analyzing the Marketing Environment 81
» | Analyzing the Marketing Environment 85
» | Analyzing the Marketing Environment 87
» | Analyzing the Marketing Environment 89
» | Managing Marketing Information to Gain Customer Insights 97
» | Managing Marketing Information to Gain Customer Insights 99
» | Managing Marketing Information to Gain Customer Insights 103
» | Managing Marketing Information to Gain Customer Insights 109
» | Managing Marketing Information to Gain Customer Insights 111
» | Managing Marketing Information to Gain Customer Insights 113
» | Managing Marketing Information to Gain Customer Insights 115
» | Managing Marketing Information to Gain Customer Insights 127
» | Managing Marketing Information to Gain Customer Insights 131
» | Consumer Markets and Consumer Buyer Behavior 133
» | Consumer Markets and Consumer Buyer Behavior 137
» | Consumer Markets and Consumer Buyer Behavior 141
» | Consumer Markets and Consumer Buyer Behavior 143
» | Consumer Markets and Consumer Buyer Behavior 159
» | Consumer Markets and Consumer Buyer Behavior 163
» | Business Markets and Business Buyer Behavior 165
» | Business Markets and Business Buyer Behavior 175
» | Business Markets and Business Buyer Behavior 179
» What is Eaton’s value proposition?
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 189
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 193
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 197
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 203
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 205
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 207
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 209
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 211
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 213
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 219
» | Products, Services, and Brands: Building Customer Value 223
» | Products, Services, and Brands: Building Customer Value 225
» | Products, Services, and Brands: Building Customer Value 229
» | Products, Services, and Brands: Building Customer Value 237
» | Products, Services, and Brands: Building Customer Value 245
» | Products, Services, and Brands: Building Customer Value 247
» | Products, Services, and Brands: Building Customer Value 249
» | Products, Services, and Brands: Building Customer Value 251
» | Products, Services, and Brands: Building Customer Value 257
» | New Product Development and Product Life-Cycle Strategies 259
» | New Product Development and Product Life-Cycle Strategies 271
» | New Product Development and Product Life-Cycle Strategies 273
» | New Product Development and Product Life-Cycle Strategies 279
» | New Product Development and Product Life-Cycle Strategies 281
» | Pricing: Understanding and Capturing Customer Value 289
» | Pricing: Understanding and Capturing Customer Value 291
» | Pricing: Understanding and Capturing Customer Value 295
» | Pricing: Understanding and Capturing Customer Value 299
» | Pricing: Understanding and Capturing Customer Value 305
» | Pricing: Understanding and Capturing Customer Value 307
» | Marketing Channels: Delivering Customer Value 339
» | Marketing Channels: Delivering Customer Value 347
» | Marketing Channels: Delivering Customer Value 351
» | Marketing Channels: Delivering Customer Value 367
» | Retailing and Wholesaling 373
» | Retailing and Wholesaling 377
» | Retailing and Wholesaling 379
» | Retailing and Wholesaling 393
» | Retailing and Wholesaling 395
» | Retailing and Wholesaling 397
» | Retailing and Wholesaling 401
» | Retailing and Wholesaling 405
» | Communicating Customer Value: Integrated Marketing Communications Strategy 407
» | Communicating Customer Value: Integrated Marketing Communications Strategy 411
» | Communicating Customer Value: Integrated Marketing Communications Strategy 413
» | Communicating Customer Value: Integrated Marketing Communications Strategy 415
» | Communicating Customer Value: Integrated Marketing Communications Strategy 429
» | Communicating Customer Value: Integrated Marketing Communications Strategy 433
» | Advertising and Public Relations 435
» | Advertising and Public Relations 439
» | Advertising and Public Relations 441
» | Advertising and Public Relations 443
» | Advertising and Public Relations 445
» | Advertising and Public Relations 447
» | Advertising and Public Relations 449
» | Advertising and Public Relations 453
» | Personal Selling and Sales Promotion 463
» | Personal Selling and Sales Promotion 469
» | Personal Selling and Sales Promotion 471
» | Personal Selling and Sales Promotion 481
» How is the sales force at Nestlé Waters structured? outsells its top competitors.
» | Direct and Online Marketing: Building Direct Customer Relationships 495
» | Direct and Online Marketing: Building Direct Customer Relationships 499
» | Direct and Online Marketing: Building Direct Customer Relationships 507
» | Direct and Online Marketing: Building Direct Customer Relationships 509
» | Direct and Online Marketing: Building Direct Customer Relationships 515
» | Direct and Online Marketing: Building Direct Customer Relationships 525
» | Creating Competitive Advantage 527
» | Creating Competitive Advantage 529
» | Creating Competitive Advantage 537
» | Creating Competitive Advantage 549
» | The Global Marketplace 551
» | The Global Marketplace 553
» | The Global Marketplace 561
» | The Global Marketplace 573
» | Sustainable Marketing: Social Responsibility and Ethics 581
» | Sustainable Marketing: Social Responsibility and Ethics 583
» | Sustainable Marketing: Social Responsibility and Ethics 587
» | Sustainable Marketing: Social Responsibility and Ethics 595
» | Sustainable Marketing: Social Responsibility and Ethics 603
» | Sustainable Marketing: Social Responsibility and Ethics 605
» | Marketing by the Numbers A21
» | Marketing by the Numbers A27
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