Online Product Management (i) Business models (2h)

Transcription

1 Online Product Management (i) Business models (2h) Georg Singer Georg dot singer ät ut dot ee linkedin linkedin.com/in/gecko, facebook facebook.com/georg.singer

2 Program for Today Lecture till 12~ Break VC talk at 12:20

3 Agenda 1. session online product managment (def) the online market place online business models 2. session Lean-product management (develpoment) principles 3. session Internet marketing

4 Readings Rework Jason Fried, David Heynemeyer The Lean Startup Eric Ries Online Produkt Management Christian Maaß (German) How to get found everywhere Rand Fishkin Internet marketing Dave Chaffey et al. The new rules of Marketing and PR, David Meerman Scott Michael Rappa, (Business models)

5 What is online product management? Product management: organizational lifecycle function within a company dealing with planning, forecasting, or marketing of a product or products at all stages of the product lifecycle. The role consists of Product development (lean startup) and product marketing (internet marketing third session), Product manager is CEO of the product Source: Wikipedia

6 Online product mangement vs. Internet marketing Online product development and Internet marketing are intertwined Engineers good developing something efficiently Marketers good at bringing something to the customer Engineers need to be able to market and vice versa Will deal with both in these three sessions

7 The online market place map Bing Internet Marketing - UT Spring Semester 2011 Pearson Education Limited /39

8 Online business models Most important aspect of your venture How do you make money? Why are you better than your competition? Why should your customer buy you? How do you differentiate yourself from the competition? How do you access the market? Many start-ups are not clear about that Etc.

9 Business and revenue models Business model Set of planned activities designed to result in a profit in a marketplace E-commerce business model Uses/leverages unique qualities of Internet and Web 11/16/2011 Internet Marketing - UT Spring Semester /21

10 8 Key Elements of a Business Model 1. Value proposition 2. Revenue model Often referred to as business model 3. Market opportunity 4. Competitive environment 5. Competitive advantage 6. Market strategy 7. Organizational development 8. Management team Copyright 2010 Pearson Education, Inc. Internet Marketing - UT Spring Semester /21

11 Revenue Model How will the firm earn revenue, generate profits, and produce a superior return on invested capital? Major types: Advertising revenue model (Google and big part of the internet) Subscription revenue model (news sites, financialtimes.com) Freemium model (many internet startups), free plus paid, Dropbbox.com Transaction fee revenue model (payment solutions) Sales revenue model (etailers) Affiliate revenue model (affiliate sites) Internet Marketing - UT Spring Semester 2011 Copyright 2010 Pearson Education, Inc. 11/21

12 Categorizing E-commerce Business Copyright 2010 Pearson Education, Inc. Models No one correct way We categorize business models according to: E-commerce sector (B2C, B2B, C2C) Type of e-commerce technology; i.e., m-commerce Revenue model Similar business models appear in more than one sector Some companies use multiple business models; e.g., ebay (brokerage, advertising ) Slide 2-12

13 B2C Models: Brokerage Model Process online transactions for consumers Primary value proposition saving time and money Revenue model: Transaction fees Examples Auction Broker: ebay.com Transaction broker: Paypal Distributor: Alibaba.com (b2b) Virtual marketplace Amazon.com, Apple app store, Android market Source: Slide 2-13

14 B2C Models: Merchant model Online version of traditional retailer Revenue model: Sales Variations: Virtual merchant: Amazon.com Bricks-and-clicks (click-and-mortar): Barnes&Noble Books Catalog merchant: Otto.com Bit-Vendor: Apple itunes Music store, e-book vendors, cloud services (hootsuite(multitwitter app)), mobile apps seller as developer Source: Slide 2-14

15 B2C Models: Advertising based model Extension of traditional media broadcast model Variations: Portal: Yahoo.com Classifieds: Monster.com, Craigslist Query based paid placement: Google, Yahoo paid search Content targeted advertising: Google, Facebook, Android app ads. Source: Slide 2-15

16 B2C Models: Infomediary model Exploit data about consumers and their consumption habits Variations: Advertising networks: Google Adwords Audience measurement services: Nielsen, Netratings Social networks: Facebook ( I like ), social graph Source: Slide 2-16

17 B2C Models: Manufacturer (Direct) model Manufacturer can reach buyer directly Mass-customization Variations: Dell Computer Chocri.com Sangar.com Source: Slide 2-17

18 B2C Models: Affiliate model Business rewards one or more affiliates for each visitor or customer brought about by the affiliate's own marketing efforts. Revenue sharing: Amazon.com, Barnes&Noble Affiliate networks: Commission Junction, Clickbank. Pay-per-Click: Travel, real easte, price comparison Source: Slide 2-18

19 B2C Models: Community model The viability of the community model is based on user Opensource: RedHat (additional services) Open content: Wikipedia (donations) Public broadcasting: Radioswisspop.ch (donations and brokerage) Social networking services Professional: linkedin.com, xing.com Non-professional: Facebook, Googe+ Specialty networks: Flickr, Slideshare, Unitedcats.com, uniteddogs.com Source: Slide 2-19

20 B2C Models: Subscription model Users are charged a periodic (daily, monthly or annual) fee to subscribe to a service. sites to combine free content with "premium" (i.e., subscriber- or member-only) content. Subscription fees are incurred irrespective of actual usage rates. Subscription and advertising models are frequently combined. Content services: Netflix, Listen.com Internet service providers: offer network connectivity Professional social networks (membership feeds): xing.com, linkedin.com Newspaper subscriptions: ft.com (financial times), wsj.com (wall street journal). Source: Slide 2-20

21 B2C Models: Utility model The utility or "on-demand" model is based on metering usage, or a "pay as you go" approach. Unlike subscriber services, metered services are based on actual usage Metered subscriptions: allows subscribers to purchase access to content in metered portions (e.g., numbers of pages viewed): nytimes.com Source: Slide 2-21

22 B2B Business Models Net marketplaces E-distributor E-procurement (alibaba.com) Bulk purchase platforms Exchange Industry consortium Private industrial network Single firm Industry-wide Copyright 2010 Pearson Education, Inc. Slide 2-22

23 Business Models in Emerging E-commerce Areas M-commerce: E-commerce models using wireless technologies and mobile phones Location based services, Foursquare: Earn points for check-in, change points for rewards Copyright 2010 Pearson Education, Inc. Slide 2-23

24 Case study Dropbox in 6 Groups (45 mins) What is the product? What is the target market? Market size? Why is Dropbox better than the competition? What were the problems with other products? What is their business model? What is free? What is paid? How did he create initial demand to test the prototype? Why did search engine advertising not work? What were the acquisiton cost per customer? What was the most successful marketing program? Why? Why did they not target business customers? How did he manage the product regarding updates and innovation? Where did/does he get ideas for product improvments from? How did they test improvements to get measurable data?