NYIT MGMT 775 - Revenue Models and Building a Web Presence

Unformatted text preview:

Chapter 3: Selling on the Web: Revenue Models and Building a Web PresenceObjectivesObjectives (continued)Revenue ModelsComputers and Consumer ElectronicsBooks, Music, and VideosLuxury GoodsClothing RetailersFlowers and GiftsDigital Content Revenue ModelsAdvertising-Supported Revenue ModelsWeb PortalsAdvertising-Subscription Mixed Revenue ModelsAdvertising-Subscription Mixed Revenue Models (continued)Fee-for-Transaction Revenue ModelsFee-for-Service Revenue ModelsFee-for-Service Revenue Models (continued)Revenue Models in TransitionAdvertising-Supported to Advertising-Subscription Mixed ModelAdvertising-Supported to Fee-for-Services ModelAdvertising-Supported to Subscription ModelMultiple TransitionsRevenue Strategy IssuesStrategic Alliances and Channel Distribution ManagementCreating an Effective Web PresenceAchieving Web Presence GoalsAchieving Web Presence Goals (continued)Profit-Driven OrganizationsPowerPoint PresentationProfit-Driven Organizations (continued)Slide 32Not-for-Profit OrganizationsWeb Site UsabilityWeb Site Usability (continued)Making Web Sites AccessibleMaking Web Sites Accessible (continued)Trust and LoyaltyUsability TestingCustomer-Centric Web Site DesignCustomer-Centric Web Site Design (continued)Connecting With CustomersConnecting With Customers (continued)Slide 44SummarySummary (continued)Chapter 3:Selling on the Web: Revenue Models and Building a Web PresenceElectronic Commerce, Seventh Annual EditionElectronic Commerce, Seventh Annual Edition 2ObjectivesIn this chapter, you will learn about:•Revenue models•How some companies move from one revenue model to another to achieve success•Revenue strategy issues that companies face when selling on the WebElectronic Commerce, Seventh Annual Edition 3Objectives (continued)•Creating an effective business presence on the Web•Web site usability•Communicating effectively with customers on the WebElectronic Commerce, Seventh Annual Edition 4Revenue Models•Mail order or catalog model–Proven to be successful for a wide variety of consumer items•Web catalog revenue model–Taking the catalog model to the WebElectronic Commerce, Seventh Annual Edition 5Computers and Consumer Electronics•Apple, Dell, Gateway, and Sun Microsystems have had great success selling on the Web•Dell created value by designing its entire business around offering a high degree of configuration flexibility to its customersElectronic Commerce, Seventh Annual Edition 6Books, Music, and Videos•Retailers use the Web catalog model to sell books, music, and videos –Among the most visible examples of electronic commerce•Jeff Bezos–Formed Amazon.com•Jason and Matthew Olim –Formed an online music store they called CDnow–Used the Web catalog revenue modelElectronic Commerce, Seventh Annual Edition 7Luxury Goods•People are still reluctant to buy luxury goods through a Web site•The Web sites of Vera Wang and Versace were constructed to provide information to shoppers, not to generate revenue•The Evian Web site was designed for a select, affluent group of customersElectronic Commerce, Seventh Annual Edition 8 Clothing Retailers•Lands’ End–Pioneered the idea of online Web shopping assistance with its Lands’ End Live feature in 1999•Personal shopper–Intelligent agent program that learns a customer’s preferences and makes suggestions•Virtual model –Graphic image built from customer measurementsElectronic Commerce, Seventh Annual Edition 9Flowers and Gifts•1-800-Flowers –Created an online extension to its telephone order business•Chocolatier Godiva–Offers business gift plans on its siteElectronic Commerce, Seventh Annual Edition 10Digital Content Revenue Models•Firms that own intellectual property have embraced the Web as a new and highly efficient distribution mechanism•Lexis.com –Provides full-text search of court cases, laws, patent databases, and tax regulations•ProQuest–Sells digital copies of published documentsElectronic Commerce, Seventh Annual Edition 11Advertising-Supported Revenue Models•Broadcasters provide free programming to an audience along with advertising messages•Success of Web advertising is hampered by:–No consensus on how to measure and charge for site visitor views•Stickiness of a Web site: the ability to keep visitors and attract repeat visitors–Very few Web sites have sufficient visitors to interest large advertisersElectronic Commerce, Seventh Annual Edition 12Web Portals•Web directory –A listing of hyperlinks to Web pages•Portal or Web portal–Site used as a launching point to enter the Web–Almost always includes a Web directory and search engine–Examples: Yahoo!, AOL, AltaVistaElectronic Commerce, Seventh Annual Edition 13Advertising-Subscription Mixed Revenue Models•Subscribers pay a fee and accept some level of advertising–Typically are subjected to much less advertising•This model is used by The New York Times and The Wall Street JournalElectronic Commerce, Seventh Annual Edition 14Advertising-Subscription Mixed Revenue Models (continued)•Business Week –Offers some free content at its Business Week online site–Requires visitors to buy a subscription to the Business Week print magazineElectronic Commerce, Seventh Annual Edition 15Fee-for-Transaction Revenue Models•Businesses offer services and charge a fee based on the number or size of transactions processed•Disintermediation–Removal of an intermediary from a value chain•Reintermediation–Introduction of a new intermediaryElectronic Commerce, Seventh Annual Edition 16Fee-for-Service Revenue Models•Fee is based on the value of a service provided•Services range from games and entertainment to financial advice•Online games–Growing number of sites include premium games in their offerings–Site visitors must pay to play these premium gamesElectronic Commerce, Seventh Annual Edition 17Fee-for-Service Revenue Models (continued)•Concerts and films–As more households obtain broadband access to the Internet, companies are providing streaming video of concerts and films to paying subscribers•Professional services–State laws are one of the main forces preventing U.S. professionals from extending their practices to the WebElectronic Commerce, Seventh Annual Edition 18Revenue Models in Transition•Subscription to advertising-supported model–Microsoft founded its Slate magazine Web site•An upscale news and current events publication•Charged an annual


View Full Document

NYIT MGMT 775 - Revenue Models and Building a Web Presence

Download Revenue Models and Building a Web Presence
Our administrator received your request to download this document. We will send you the file to your email shortly.
Loading Unlocking...
Login

Join to view Revenue Models and Building a Web Presence and access 3M+ class-specific study document.

or
We will never post anything without your permission.
Don't have an account?
Sign Up

Join to view Revenue Models and Building a Web Presence 2 2 and access 3M+ class-specific study document.

or

By creating an account you agree to our Privacy Policy and Terms Of Use

Already a member?