E-Business Brands and the ramifications of the net.

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E-Business Brands and the ramifications of the net. A few Contemplations On:. The Web and: Brand working at twist speed: the essentials still tally Three "liberates" that are powering the Net Ramifications of the Web. 1986 IBM $73 Exxon $50 G. E. $39 AT&T $27 G.M. $21.
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E-Business Brands and the net\'s ramifications

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Some Thoughts On: The Internet and: Brand building at twist speed: the basics still check Three “frees” that are powering the Net Implications of the Internet

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1986 IBM $73 Exxon $50 G. E. $39 AT&T $27 G.M. $21 Total Market Capitalization

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Two Questions What part do brands play in business sector capitalization? What has been the record of the new “Internet Brands?”

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Valuing the Brand Identify the aggregate profit stream connected with the brand. Deduct from that the estimation of a reasonable profit for the altered resources utilized by the brand Further deduct income credited to different intangibles: interesting procedures, licenses, exclusive frameworks Evaluate the outcome as a donor to market capitalization

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Coca-Cola $84 Microsoft $57 J&J $48 IBM $44 GE $34 Ford $33 Disney $32 Intel $30 McDonald’s $26 Billion Dollar Brands AT&T $24 Marlboro $21 Nokia $21 Mercedes $18 Nescafe $18 H-P $17 Gillette $16 Kodak $15

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Coca-Cola 59% Microsoft 21% J&J 45% IBM 28% GE 10% Ford 58% Disney 61% Intel 21% McDonald’s 64% Brand as % of Market Cap AT&T 24% Marlboro 19% Nokia 44% Mercedes 37% Nescafe 23% H-P 31% Gillette 37% Kodak 60%

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Cisco $271 AOL $163 Yahoo $51 Amazon $25 eBay $18 Etoys $6 HomeStore $3 Drugstore.com $2 USWeb $3 Bamboo.com $.3 Internet versus Customary Brands AT&T $147 CBS $37 Gannett $20 Barnes&Noble $3 Knight Ridder $5 Toys R Us $3 Cendant $12 Avis

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Internet Accounting “Get Big Fast” has been the mantra Suspension of any ROI necessities Difficult for traditional firm to contend New metric: ROT or ROB How does Walgreen rival Drugstore.com?

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Conclusions: Internet has made colossal brands First movers have increased real focal points Incumbents have to a great extent missed the Internet brands use traditional media to validate themselves You can be “Amazoned” on the off chance that you are not ready

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What is a Brand? What the Internet has not changed: “Capitalized estimation of the trust between a customer and a firm” Powerful brands can be a company’s most noteworthy resource “A Brand is a Promise that When Kept Creates Preference”

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Building Powerful Brands Brand Positioning : the center guarantee to the shopper Brand Personality : why the buyer should like the Brand Attitude : what the purchaser thinks the brand feels about them

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Apple Computer McDonald’s IBM Harley Davidson Johnson & Johnson Microsoft New York Times/CBS Poll July 17 - 19, 1999 Teammate” “Mother/Child” “Best Friend” “Close Friend” “Childhood Buddy” “Master/Slave”

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Matches Apple “Close Friend” McDonald’s “Childhood Buddy” IBM “Teammate” Harley Davidson “Best Friend” Microsoft “Master/Slave” J&J “Mother/Child”

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Brand Positionings Ingredient Expectations (Hershey) Performance Expectations (Sony) Service Expectations (UPS) Image Expectations (Rolls Royce) Horizontal - Sears, Disney Vertical - Campbell’s,Coke

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Importance of Brand “At the Coca-Cola Company, every worker has one and only occupation — to ensure and upgrade the Coca\'s estimation Cola trademark . . . everything else is fluff!” Donald R. Keough President (resigned) The Coca-Cola Company

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Internet and Brands Brand basics still check Competitors are regularly not conventional firms First mover favorable position amplified on the Web Financial measurements of the .com organizations are in a broad sense distinctive “Lead, don’t go along with them or take after them!”

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Innovation What four incredible US enterprises started in 1886? Why was for the current year noteworthy? Coca-Cola, Sears, Kodak and J&J By 1886 we had a national correspondence framework and a national transportation framework Internet is what might as well be called both the railroad and the broadcast

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Would You Invest With This Group?

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“How e-trade Will Trump Brand Management” Harvard Business Review J/A 99 Ad spending keeps on climbing Quads, Pods and Optimizers however no genuine responsibility Where are the effectiveness/efficiency picks up? Diverge from demonstrated upgrades in profitability in different ranges: producing, transportation, correspondences, logistics, and so forth

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Phil Guarascio of GM “Let me get some information about a genuine matter: your work. What might you do if your supervisor had the impression you were extravagant, excluded from responsibility and nonessential? I comprehend what I would do. I’d alarm. That’s what we have to do about our aggregate employment, promoting. Since an excess of managers - our customers - offer that ‘triple-X’ perspective: that promoting is X-contemplative, X-empt from responsibility and X-pendable.”

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1950 Network TV Mainframe Computer Self administration retailing Mass Marketing Large brands/firms Vertical syndications 1950 versus 2000 Fragmented TV Personal PC E-business One-to-one showcasing Mass customization & little firms

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Predictions: PC as we probably am aware is will be supplanted Reason: “three frees” Bandwidth Processing force Storage costs TV loses to PC and Info Appliance Internet changes the showcasing scene: publicizing and dissemination

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Prepare Yourself For: IP executes exchanged circuits: AT&T versus Cisco Internet publicizing surpasses system TV levels inside of five years Internet requests “integrated marketing” Super “category killers” in e-trade Power moves overwhelmingly to buyer Accompany Inc. does “group bids” - Pilot at $347 versus $316 if 21 individuals purchase on the double

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Personal Computer Desktop similitude from PARC around 1970’s Overlapping windows, envelopes, point & snap, documents, catalogs, drives, OS’s, applications, discontinuity, crashes, infections, and so forth. Premise: extravagant memory and lavish registering force Outmoded and to be supplanted

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Three “Frees”

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Free Bandwidth See George Gilder 1984 Mac 400 bits for every second 1998 Mac 56,000 bits for every second ISDN 128,000 bits for each second DSL 1,500,000 bits for each second Cable Modem: 3,500,000 bps Wave Division Multiplexing: 1 trillion bits for each second

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Free Storage expenses of 1MB of information 1988 $11.52 1998 10⢠2001 2⢠PVR’s (Replay TV & TiVo) “intelligently” records up to 30 hours of TV; skips advertisements

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Free Processing Power 1985 - Intel 386 $120 MIPS 1989 - Intel 486 $48 MIPS 1993 - Pentium $13 MIPS 1995 - Pent. Pro $4.40 MIPS 1998 - Pentium II $0.99 MIPS 1999 - Motorola G4 $0.25 MIPS

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PC/Info Appliance versus Television “Three Frees” and the law of Telecom point of preference the PC Each PC family unit burns through 15 hours/week online and 20 extra hours/week utilizing PC -Odyssey Research 10/5/99

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My Belief: Internet speaks the truth to switch similitudes and change our lives We need to deal with this move Networking, preparing power and free stockpiling will bring about an ability for anxiety lessening and straightforwardness for your clients

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Clear Indicators Information Technology in US (Software/Hardware/Telecommunications) has turned into the biggest segment of the US economy. ($866 billion) Larger than Housing, Automobiles or Grocery Products. Santa Clause Clara County: $26 billion in fares

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E-trade Hot List Business to Business: MRO Books, films music presents and blooms Travel administrations Automobiles & car administrations Consumer hardware & toys Prescription medications/H&BA Real home deals and promoting Banking and budgetary administrations Employment administrations

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E-tailing: Clicks and Mortar Savvy retailers will receive the Internet in relationship with their storefronts Even if the buy is not culminated on the Internet, the “pre-store” shopping will be done on the Net.

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Distribution Margins Four level framework = 50% Wal-Mart framework = 25% Dell Computer = 10% OnSale.com = Cost+$10 Priceline.com = Your Price Free PC = Nothing

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Allstate Insurance One billion dollars to move to the Web “The most recent sample of a conventional ‘bricks and mortar’ organization being pulled onto the Web” Slash 4,000 positions for a yearly investment funds of $600 million Who’s next? Your organization?

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Transaction Costs 1900 - 25% 1980 - 45% 2010 - 25% Paper Purchase Order - $85 EDI/EFT - 10 pennies USPS - 3 billion receipts/checks

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Marketing in an Information Age One to one; not mass showcasing Relationship not simply “selling” Lifetime estimation of the client Database mining Reduce client anxiety Increase straightforwardness

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Three Corners of Business Strategy Innovation Customer Focus Operational Excellence

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Did I Convince You? Brands make shareowner riches? Web quickens this procedure? E-organizations are changing the principles? Assault your own particular plan of action before someone else does?

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Reasons to join Small Busi

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