By: Jordan Post Stephanie Hodge Thomas Torgersen
Company Description
• Founded in 1995 by Pierre Omidyar • CEO Meg Whitman • 32 countries • PayPal, Skype, Rent.com, Half.com • Craigslist, MercadoLibre
Business Mission
• Mission Statement: “We help people trade practically
anything on earth.” • eBay’s community is guided by five fundamental values that are listed on their website:
1. We believe that people are basically good. 2. We believe everyone has something to contribute. 3. We believe that an honest, open environment can bring out the best in people. 4. We recognize and respect everyone as a unique individual. 5. We encourage you to treat others the way you want to be treated.
Marketing Objective
• Provide every product that a consumer
could want • Changing environment require constant changes • Marketing “it”
http://www.youtube.com/watch?v=JelLQetTqn4&mode=related&search=
Industry Analysis
• Trends: • Competitors
– “BuyNow” function – PayPal service
– Amazon.com, Google, Yahoo – Anyone with access to a computer – Focusing recently on younger generation – “click-to-call” advertising – PayPal and BuyNow
• Customer Profile
• Technology
SWOT Analysis
• Strengths • Weaknesses
Dominant market share Customer Relationship Management (CRM)
Lack in success in Asian market Acquisitions/partnerships Expansion of existing services Transaction costs Competitors
• Opportunities
• Threats
Target Market Strategy
• Unlimited target market • Targeting younger generation: majority of
users between the ages of 35 and 44
– Teaming with Myspace.com and Facebook.com
• International market is becoming a bigger
focus, specifically the Asian market
Marketing Mix
• Product
– eBay provides services for customers, instead of a physical product • Place/Distribution – eBay does not have actual stores so it is not limited to certain areas. • Promotion – eBay has many partnerships, especially with other online companies such as Google.com. Online advertisements are quickly becoming important to eBay’s success • Price – Sellers are charged two different fees • Insertion Fee: between 1 cent and $4.80 • Final Value: 5.25% to 8.50% of the final sale price
Marketing Research
• “Hot List” items that are selling the
quickest • User rating systems • There was not much on marketing research, except eBay’s research on their own customers and auctions in order to provide information for the users.
Organizational Structure and Plan
• Executive Team – ten members • Communication is imperative: provide
service to 24 nations, including eight more in Latin America through MercadoLibre.com • Over 12,600 employees • “built on commerce, sustained by trust, and inspired by opportunity.”
Financial Projections
• Revenue: • Registered Users: • 2007 (Expected):
– 2005: $4.6 billion – 2006: $6.0 billion, which is a 31% increase
– 2005: 181 million – 2006: 220 million, which is a 23% increase – Revenues between $7.050 billion and $7.300 billion – One of eBay’s reasons for expansion is, “the company’s need to increasingly achieve growth from its existing users as well as from new users in its more established markets.”
References
• • • • • • • • • • • • •
Books: Horvitz, L.A. (2006). Meg Whitman: President and CEO of eBay. New York, NY: Ferguson. Lamb, C, Hair, J, & McDaniel, C (2006). Marketing, 9e. Canada: Thomson South-Western. Web sites: Gordon, D (2006, September, 1). Capitalizing on eBay’s Distribution Channel. Retrieved May 1, 2007, from http://eventuring.org/eship/appmanager/eventuring/eventuringdesktop.com Hemscott (2006). eBay inc profile. Retrieved May 5, 2007, Web site: http://www.marketwatch.com/tools/quotes/profile.asp?symb=ebay Mullen, A (2007). eBay. Retrieved March 3, 2007, website: http://www.mullen/ebay.com Myers, J (2004). CBS & eBay Launch Promotional Partnership. Retrieved May 5, 2007, from Jack Myers Media Village Web site: http://www.mediavillage.com/jmr/2004/09/08/jmr-09-08-04/ Vauhini, Vara (2007, March, 1). eBay Bids for Younger Auction Crowd at Social-Network. The Wall Street Journal, p.B1. (2007). eBay Inc. (EBAY): profile. Retrieved March 15, 2007, from Yahoo Finance Web site: http://finance.yahoo.com/q/pr?s=EBAY (2007). eBay, Retrieved May 5, 2007, Web site: http://pages.ebay.com/aboutebay/thecompany/companyoverview.html
References (cont.)
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(2007). eBay Market Research. Retrieved May 1, 2007, from AllBusiness Web site: http://www.allbusiness.com/marketing/market-research/3247-1.html (2007). The eBay Company. Retrieved April 25, 2007, from eBay Web site: http://pages.ebay.com/aboutebay/thecompany/companyoverview.html (2007). eBay Inc. Retrieved May 5, 2007, from Hoovers: A D&B Company Web site: http://www.hoovers.com/ebay/--ID__56307,ticker__--/free-co-fin-factsheet.xhtml (2007, January 24). eBay Inc. Announces Fourth Quarter and Full Year 2006 Financial Results. Retrieved April 1, 2007, from eBay Press Release Web site: http://files.shareholder.com/downloads/ebay/122127216x0x69405/2cbacae7-15cf-46fb-9a19a89664d4e591/eBayIncEarningsReleaseQ42006.pdf (2006). SWOT Analysis eBay. Retrieved April 24, 2007, from Marketing Teacher Web site: http://marketingteacher.com/SWOT/eBay_swot.htm (2006, July). eBay Inc.: Company Profile. Retrieved May 6, 2007, from Datamonitor Web site: http://datamonitormarketresearch.com/Merchant2/merchant.mvc?Screen=PROD&Product_Code=552&Category_Code=eBay&Product_Cou nt=0 (2006, August 28). Google and eBay Sign Multi-Year Agreement to Connect Users, Merchants, and Advertisers Around the Globe. Retrieved March 8, 2007, from eBay Press Release Web site: file:///F:/releasedetail.cfm.htm (2006, July). eBay Inc.: Company Profile. Retrieved April 10, 2007, from DATAMONITOR Web site: http://www.datamonitor.com 2005-2007). Community Values. Retrieved March 3, 2007, from eBay Web site: http://pages.ebay.com/community/people/values.html (2001). eBay's History. Retrieved March 3, 2007, from eBay's History Web site: http://www.cs.brandeis.edu/~magnus/ief248a/eBay/history.html