[경영학] FreeMarkets OnLine STP, 4P전략(영문)

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[경영학] FreeMarkets OnLine STP, 4P전략(영문)에 대한 자료입니다.
목차
1. Introduction

2. Main subject

1) STP

(1) Segmentation and Targeting

(2) Positioning

2) Marketing Strategy

3) 4P Mix
본문내용
(2) Positioning
We think about the values that company can give its customers using 4 criteria. – Price, Information, time, and reliability. For buyers, it is valuable for them to cut their budget, so we give more points as the price is lower. And also, the more the customers were given high-quality information and saved economy-time, the more we give points to FreeMarkets Online. About reliability, we grade how they rely on BidWare software when the customers use it.

Picture A. Offering value

The highest point which can be awarded is ten points. The score of this company we evaluate like this ; Price=8, Time=7, Information=8, reliability=3. In the price section, we give them points considering two things. First, through Competitive Bidding Event, purchasing cost can be saved up to 15%. Second, in spite of providing high quality information, FreeMarkets Online got half of the money compared to other consulting companies. In the time section, we consider the following. Providing real time bidding service, buyers can save the time which they search suppliers and then decide a place to meet each other. In the reliability section, we reflect the characteristics of online system. In the information section, we thought of FreeMarket’s effort to make market. As we can see from Picture A, FreeMarket provides a lot of portion, in other words, value to buyers. We think, however, this is the problem. Providing a lot of value means that they spend much cost at the same time. Ground of them can be found from FreeMarket’s balance Sheet.
In the TABLE C, The more total revenue grows, the more total cost grows. So we can see a fact that we get a loss at the Net Income.
Actual
FY 1995 Actual
FY 1996 Actual
FY 1997
Total revenues 16,512 408,820 1,783,179
Total cost
of Services
-Market Making 24,095 505,691 1,108,629
... ... ... ...
Net Income/(Loss) $(921,802) $(1,431,188) $(1,016,092)
Table C. Balance Sheet of FreeMarkets OnLine

It goes without saying that Net Income loss can be explained initial phenomenon of business, because of stockholder’s equity rapid growth. But when we review Picture A, we can realize positioning problems. That is, both information and price occupy a lot of portion. Providing high information and low price cannot coexist. In order to get high information, we should cost a lot of money. But Freemarkets ignores these things and sticks to Lower price, it makes Revenue Model become worse. So we have to pick one thing between Information and Price. Low price offers high benefits to buyers but it is always difficult to offer low price in the competition of potential competitors. Building information cost a lot at the beginning, but we can provide through accumulation more one as time goes on and cost will be falling. Freemarket based on internet service has a shortcoming of low reliability and they try to overcome it with providing high information in market making process. In conclusion, by pointing a more value to information we can overcome our shortcoming and differentiate our values compared to competitors. So we evaluate like this ; Price=6, Time=7, Information=8, reliability=3. Time and Reliability section is same because they are characteristics of product. In the Price and Information section, we adjust points of price competitiveness lower in order to provide high information constantly. We will introduce the solution to adjust price at the 4P Mix, and solution to bad felling of adjusted price at Marketing Strategy.

2) Marketing Strategy
We thought differentiation policy is more important than low price policy in this case. The core concept of FreeMarket’s differentiation is information. Considering the fact that ‘average skill level of buyers in a wide range of manufacturing companies was low and the information available to help them make decision was very limited’, the information FreeMarket carries is worth enough. Moreover time saving through online real time bidding system is worth enough. So except price competitiveness, buyers had the reason why they use FreeMarket’s Bidware software. Additionally, it is a good way that FreeMarkets build Networked Purchasing Information System and use more information which they already obtained.

3) 4P Mix
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