Presentation on eBay

Presented by:CORPOCRACY

MBA, 4th BatchDepartment of Marketing

Jagannath University

Introduction

• eBay is an American multinational Internet consumer-to-consumer corporation was established in 1995 by Mr. Pierre Omidyar

• It has the capacity of a kind to buy and sell online and safely. EBay started as a "pet project" and eventually mastered in electronic trading.

• Any client of EBay who has a Direct Debit facility with him/her, which is a symbol that enables any person to register and start buying or selling.

EBay Segmentation

Geographic Segmentation

• E-Bay segments the market based on the nation. • For example: the apps will suggest the most popular products such as the clothes, shoes and accessories are in the front page for American.• With millions of buyers and sellers worldwide, eBay offer it’s localized sites in following markets: Asia Pacific: Hong Kong, India, Malaysia etc. Europe: Austria, Belgium, France etc. North America: Canada, United States

Demographic Segmentation

• Generally targets a very wide range of demographic, largely based on typical Internet users

• Majority eBay users have an average age of 35 and above.

• In terms of gender, both male and female users are almost as equal much with 53% of them is male.

• Majority of the eBay users has an average income of $50k-$75k per year

EBay Segmentation

ebay SegmentationMajor Product Category’s Segmentation

• Collectibles• Electronics• Entertainment• Clothing• Motor vehicles

ebay Segmentation

Business Model of eBay

1) Seller uploads the picture and description of the item to be sold.

2) Sale ends at predetermined time.3) High bidder and seller contact each other and make

arrangements of shipment.4) Buyer sends funds to seller {money order, check,

PayPal}, seller sends goods.5) Buyer and seller then grade each other through

feedback forums

E-Marketing campaign• Online advertising

– promotion with key word search– Affiliate marketing– You tube

• Social media marketing– Social network – Blog marketing

• Catalog marketing• Email marketing• sponsorship• Broadcast advertising• Sales promotion

Current Online Campaign

Free-Listing Promo for Selected Sellers: allows eligible sellers to list up to 25,000 items in select categories and pay no insertion fees.

eBay Bucks: designed to reward eBay members for purchasing items on www.ebay.com. eBay Bucks Certificates are provided based on Qualifying purchases.

Current Online Campaign

eBay Coupons: eBay offer different amount of discount on selected products to its buyers.(10% on electronic, 12% on fashion, 20% on beauty and fragnece etc.)

eBay Power Seller: EBay Power Seller program is introduced to increase the total quality sell through eBay auction site. Power Sellers get special benefits from eBay.

Current Online Campaign

eBay Daily Deals: Items are offered with free shipping and heavily discounted prices, are sold for 24 hour Duration.

ebay Online Video Campaign: EBay post different ads or videos on different websites especially on You Tube with different massages. Recently post a video with a high voltage message “Want it, Get it”.

Goals for designing e-marketing elements of e-Bay ……

Drive traffic Capture leads Convert into customerCreate repeat and referral business

E-marketing elements …….

Design matter Strategic content Make it simple Teach the visitors SEO

eBay marketing mix elements

PRODUCT. PRICE. PLACE. PROMOTION. PROCESS. PHYSICAL EVIDENCE. PEOPLE

• ebay offers a marketplace for the sale of goods and services. It also provides online payment and communication services to individuals and businesses.

• Products on sale at EBay include millions of collectibles, décor, appliances, computers, furnishings, equipment vehicles and other miscellaneous items are listed, bought, or sold, daily.

• Participants, who list an item on EBay, are charged an insertion fee.

• A final sale price fee is charged to a seller at the end of an auction. This fee generally ranges from 1.25% to 5% of the final sale price.

• Sellers pay a fee for additional listing options to promote the item, such as highlighted or bold listing.

eBay Marketing Mix ElementsProduct Price

EBay provides an international site visibility feature which allows some listings created on EBay.com to be posted on international sites (such as the U.K. site).

Buyers on these sites will see the listings exactly as you originally post them on the U.S. site

There are EBay Coupons, EBay discounts, EBay Promotional codes, and an EBay bargains page at DealTaker.com

EBay Radio provides traders and EBay community members with the latest news and views from around the EBay world and covers major EBay events like the annual EBay Live Conference

eBay Marketing Mix ElementsPlace Promotion

• EBay provides helpful information to facilitate the use of its services at EBay University http://pages.EBay.com/sellerinformation/starting/university.html.

Physical Evidence The EBay, Inc

headquarters is located at 2145 Hamilton, Ave, San Jose California.

John J. Donahoe is the President & Chief Executive Officer Pierre Omidyar is Chairman of the Non-Executive Board BobSwan is Senior Vice President Scott Thompson is President of PayPal

eBay Marketing Mix ElementsProcess People

SWOT Analysis To better asses EBay Viral marketing recommendation is a SWOT

analysis performed for the variables that affect them and their position in the online market identification.

Strengths It has a strong brand image. Extensive product line offers everything. Strong sense of community among online users, and among

his own employees. eBay encourage teamwork and expects his employees to

open, honest. eBay people can communicate with similar interests, talk, and

share information . The "Feedback Forum.

SWOT Analysis Weaknesses

Limited control over the fraud and problems that may arise as a result of daily transactions on ebay.

False issues, fake sales, and stolen products through the EBay site can really weaken the company's standing, trust and honesty.

Technical problems and service disruptions. Business model is easily replicable.

SWOT Analysis Opportunities

Growth of the internet and international market access. There are still opportunities in current markets potential

consumers that have not discovered the benefits of online auctions.

Acquisition of other online auction sites .

SWOT Analysis Threats

Increasing number of competitor such as Amazon.com, Yahoo.com

Bargaining power of suppliers. Substitutes product or services such as b2b, b2c service

providers. Increasing competition from Amazon and yahoo. No barrier to entry in the industry. Buyer-seller frauds Technology failure or/and change

Improvement Areas of eBay

• Public Service Advertising - Advertising for Social Causes.

• Celebrity Advertising.• SMS Advertising.• Free gifts.• Offer repeat-buyer

discounts and other promotional coupons.

Continue…

• Introducing PayPal.• Enter the air ticketing

markets by PayPal.• Fraud prevention system.• Software development.• Improve the security,

efficiency, and adaptability.

Issues of privacy & trust …..

Expand value added services. Major focus on trust and safety programs Maximum transparency. EBay's tackle of security Fraud protection program- coverage of users up to $2OO. Neutral dispute resolution options.

Conclusion …..

eBay virtually monopolizes the online auction market, due to their large network value, extremely low costs, reputation for security, and efficient operations. These advantages should ensure EBay’s continued domination of online auction sin the future. As long as EBay continues to aggressively maintain its community and reputation of security, twill dominates the online auction market.

THANK YOU