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Casual Articles - E-commerce : The Bottom of Pyramid Approach
While watching Face the Nation one Sunday earlier this year, Bob Schiffer discussed the airline industry, his mother and ethics in business. Like Bob, I think it is a sad commentary today, that we have to police businesses. Whatever happened to going into business to provide a needed service, being loyal to employees, and keeping promises. It seems like no one today is concerned about doing good business or being ethical in the process. Our forefathers would be ashamed at what this society has come to. I know I am. Chuck and I teach our students how to run a good business, by being ethical, and making sure that everyone is happy. We run our business using the adage, “The customer is always right”. We know, however, from looking at others in business both on and offline, that we are in the minority. For most it is all about making money. They don’t care who they have to step on, how many lies they tell, just “show them the money”. As I pointed out in my article re
(2) In the process give more control in their hands, empower them to generate more purchasing power and habit to help yourself as well as the industry.
See two very bottom level examples.
(1) Jon Gales, the owner of the www.mobiletracker.net makes close to $5000 per month just by using Google adsense. Take notice, he is merely a happy go lucky child of 19 years.
(2) For small time people who want more sales to be generated for their small time business uses Google adwords and Froogle. Even if they do not any business product, they can sale someone else product and have a handsome money in exchange for working for someone else at their own home.
Does it make a company commercially viable? Do not ask me. Watch it.
Seth Gobin a well known online advertising consultant and former Yahoo employee, used to be dubious about Google’s prospect. Not anymore “ They
Getting the attention of the customer is the only way a company can survive. Since there are other brands competing, it is important to advertise in order to gain leverage over the others.A company can spend a lot of money on television, radio or the billboards but if there isn’t enough money in the budget it is best to use advertising balloons instead. The practice of using this in the United Kingdom is almost the same as in the United States.The firm can choose to use inflatables or get those that are powered using helium. Most of the companies in the United Kingdom go to a firm that will make a design or use an existing one and get that ad in the air. An experienced pilot will fly one of these as well as take some riders who will like to come on board.The standard shape of the balloon is always there. If people want a different touch, this can be shaped into a soda can, a strawberry or a famous cartoon character that can really make people look up and be s
In 1990s, Internet came along and change the paradigm of whole global market. Because here we have a great tool “Internet” a very efficient, very potent to penetrate the earlier thought impregnable market sec. For most if the time it is the exposure to the outer world and information is necessary to make any decision and growth of any section of society or part of world. Internet is playing that role very efficiently.
Internet is a Mass product. Here power lies in the hand of individuals, rich or not so rich(This terminology is taken from Fortune at the Bottom of Pyramid by C.K. Prahalad, Wharton Publishing). General theory of market states (i) Top end market is value driven. (ii) Bottom end market is volume driven.
Through these two anomaly, we can clearly recognize that Internet companies are focusing on the second approach and that is what CK Prahalad call Bottom of Pyramid(BOP) approach in his path breaking book Fortune at the Bottom of Pyramid.
I can give a big list of such companies, but for instance take some shining stars of today Internet economy. (i) ebay.com (ii) aol.com (iii) clickbank.com (iv) Google.com
We will study the Mother of all search engine Google and its approach to BOP.
Lets compare the Google strategy and its behemoth competitors( well not today, but in formative days of Google when it matter most.) Google is a search engine based on Pay per click(PPC) approach to the internet economy. In formative days, Google done exactly what others thought and well recognized by the Gurus that the model is not viable and Google will be doomed to graveyard.
Most of Dot Coms or brick and mortar companies on internet were making money for advertising. They charge for the advertising space they provide to the advertiser and charge them for a fixed duration and also all these prepaid only. This approach was already imminently followed in TV advertising and to some extent very successful. Advertisers did not had any options. For them it was dark space to jump into. They did not had any control even after paying handsome sum for space on Net.
See the other side of the coin. The consumer( technically visitor) were not part of revolution. Even if they were, they were used to be only exploited for generating huge profit for firms operating on the Net.
Google came to foray with a refreshing style and a very uncommon approach to the market. 1. No Images on its main page. ( there is option available in other pages but not very popular.) 2. Tool and services for the common people. 3. Free for all( even sometime for advertisers also)
See where is the money? I guess 90% would not see any or many.
Google spread its wings on net through word-of-mouth marketing and keeping a intense focus on the common people using internet. In the process Google developed it owns marketing and revenue generation model with empowering the common people, who worship Google( I can be counted one of them).Google invented many new model which was never thought before.
(i) Google adsense
(ii) Google Adwords
(iii) Froogle ( similar to ebay.com but free for all.)
(iv) Google Search
Seeing deep into Google strategy and approach to net economy we can define two things.
(1) Focus on common people in big volume in terms of purchasing power
(2) In the process give more control in their hands, empower them to generate more purchasing power and habit to help yourself as well as the industry.
See two very bottom level examples.
(1) Jon Gales, the owner of the www.mobiletracker.net makes close to $5000 per month just by using Google adsense. Take notice, he is merely a happy go lucky child of 19 years.
(2) For small time people who want more sales to be generated for their small time business uses Google adwords and Froogle. Even if they do not any business product, they can sale someone else product and have a handsome money in exchange for working for someone else at their own home.
Does it make a company commercially viable? Do not ask me. Watch it.
Seth Gobin a well known online advertising consultant and former Yahoo employee, used to be dubious about Google’s prospect. Not anymore “ They h
You might be asking, what’s the importance of press releases? After all, you advertise your business and spend good money to get the word out about the invaluable services you are providing your customers. You might be thinking that you have no need for press releases or the media; you’re not in the business of making news, but of making money.Well, you might be surprised to discover that there’s a simple answer to why press releases for your business are so important. Most people never think about it, they are more concerned with creating a successful company, but once they do, and follow through, in just a short period of time -- weeks or just a few months -- they may begin to see a major change in the way the media, and most importantly, their clients, see them.Advertising and publicity are two completely separate tools that businesses often confuse with each other. While advertising is used to keep your company, products, and/or services in the mind of the public
Through these two anomaly, we can clearly recognize that Internet companies are focusing on the second approach and that is what CK Prahalad call Bottom of Pyramid(BOP) approach in his path breaking book Fortune at the Bottom of Pyramid.
I can give a big list of such companies, but for instance take some shining stars of today Internet economy. (i) ebay.com (ii) aol.com (iii) clickbank.com (iv) Google.com
We will study the Mother of all search engine Google and its approach to BOP.
Lets compare the Google strategy and its behemoth competitors( well not today, but in formative days of Google when it matter most.) Google is a search engine based on Pay per click(PPC) approach to the internet economy. In formative days, Google done exactly what others thought and well recognized by the Gurus that the model is not viable and Google will be doomed to graveyard.
Most of Dot Coms or brick and mortar companies on internet were making money for advertising. They charge for the advertising space they provide to the advertiser and charge them for a fixed duration and also all these prepaid only. This approach was already imminently followed in TV advertising and to some extent very successful. Advertisers did not had any options. For them it was dark space to jump into. They did not had any control even after paying handsome sum for space on Net.
See the other side of the coin. The consumer( technically visitor) were not part of revolution. Even if they were, they were used to be only exploited for generating huge profit for firms operating on the Net.
Google came to foray with a refreshing style and a very uncommon approach to the market. 1. No Images on its main page. ( there is option available in other pages but not very popular.) 2. Tool and services for the common people. 3. Free for all( even sometime for advertisers also)
See where is the money? I guess 90% would not see any or many.
Google spread its wings on net through word-of-mouth marketing and keeping a intense focus on the common people using internet. In the process Google developed it owns marketing and revenue generation model with empowering the common people, who worship Google( I can be counted one of them).Google invented many new model which was never thought before.
(i) Google adsense
(ii) Google Adwords
(iii) Froogle ( similar to ebay.com but free for all.)
(iv) Google Search
Seeing deep into Google strategy and approach to net economy we can define two things.
(1) Focus on common people in big volume in terms of purchasing power
(2) In the process give more control in their hands, empower them to generate more purchasing power and habit to help yourself as well as the industry.
See two very bottom level examples.
(1) Jon Gales, the owner of the www.mobiletracker.net makes close to $5000 per month just by using Google adsense. Take notice, he is merely a happy go lucky child of 19 years.
(2) For small time people who want more sales to be generated for their small time business uses Google adwords and Froogle. Even if they do not any business product, they can sale someone else product and have a handsome money in exchange for working for someone else at their own home.
Does it make a company commercially viable? Do not ask me. Watch it.
Seth Gobin a well known online advertising consultant and former Yahoo employee, used to be dubious about Google’s prospect. Not anymore “ They
How do you acquire new clients?o Face-to-face networkingo Referral onlyo Cold callingWhatever method you use to gain a new client the #1 thing you can never forget is to show them, all of them, how much you care.Let me share my dating analogy with you...When you're on a first date, you're on your best behavior (and being authentic the entire time).On your first date (aka: first meeting) you ask lots of questions to get to know this person better - their likes, dislikes, passions, aspirations.Armed with this knowledge, you're now able to do little things for them you know they'll enjoy; send them their favorite flowers, prepare their favorite meal, suggest a movie or play you know they'll like. You get the idea.Soon after the first meeting you follow-up for fear they might be wined and dined by someone else.Before you make your "first move" you test the waters and look for the signals that it's okay
Most of Dot Coms or brick and mortar companies on internet were making money for advertising. They charge for the advertising space they provide to the advertiser and charge them for a fixed duration and also all these prepaid only. This approach was already imminently followed in TV advertising and to some extent very successful. Advertisers did not had any options. For them it was dark space to jump into. They did not had any control even after paying handsome sum for space on Net.
See the other side of the coin. The consumer( technically visitor) were not part of revolution. Even if they were, they were used to be only exploited for generating huge profit for firms operating on the Net.
Google came to foray with a refreshing style and a very uncommon approach to the market. 1. No Images on its main page. ( there is option available in other pages but not very popular.) 2. Tool and services for the common people. 3. Free for all( even sometime for advertisers also)
See where is the money? I guess 90% would not see any or many.
Google spread its wings on net through word-of-mouth marketing and keeping a intense focus on the common people using internet. In the process Google developed it owns marketing and revenue generation model with empowering the common people, who worship Google( I can be counted one of them).Google invented many new model which was never thought before.
(i) Google adsense
(ii) Google Adwords
(iii) Froogle ( similar to ebay.com but free for all.)
(iv) Google Search
Seeing deep into Google strategy and approach to net economy we can define two things.
(1) Focus on common people in big volume in terms of purchasing power
(2) In the process give more control in their hands, empower them to generate more purchasing power and habit to help yourself as well as the industry.
See two very bottom level examples.
(1) Jon Gales, the owner of the www.mobiletracker.net makes close to $5000 per month just by using Google adsense. Take notice, he is merely a happy go lucky child of 19 years.
(2) For small time people who want more sales to be generated for their small time business uses Google adwords and Froogle. Even if they do not any business product, they can sale someone else product and have a handsome money in exchange for working for someone else at their own home.
Does it make a company commercially viable? Do not ask me. Watch it.
Seth Gobin a well known online advertising consultant and former Yahoo employee, used to be dubious about Google’s prospect. Not anymore “ They
Are you loaded with so much of accounting work that other growth aspects of your business are suffering? Then, you really need the assistance of accounting outsourcing services that will take you out from tensions. Accounting is one of the most difficult tasks to manage and that too at the time of filing tax. You have to sit and put in extra efforts to tally all the accounting documents. It is because if the total does not match, then you may land up in problem as checking of all those small bills will consume hell lot of time. This reason has made accounting outsourcing services all the more a necessary part of one's business organization.See, if you keep on checking only the financial documents all the time and neglect profit venturing aspects of your business; then you surely will incur losses. This is something that no one would like to have. We all are here in the market to earn profits and be responsible for the growth of our business. This drive of everyone has helpe
See where is the money? I guess 90% would not see any or many.
Google spread its wings on net through word-of-mouth marketing and keeping a intense focus on the common people using internet. In the process Google developed it owns marketing and revenue generation model with empowering the common people, who worship Google( I can be counted one of them).Google invented many new model which was never thought before.
(i) Google adsense
(ii) Google Adwords
(iii) Froogle ( similar to ebay.com but free for all.)
(iv) Google Search
Seeing deep into Google strategy and approach to net economy we can define two things.
(1) Focus on common people in big volume in terms of purchasing power
(2) In the process give more control in their hands, empower them to generate more purchasing power and habit to help yourself as well as the industry.
See two very bottom level examples.
(1) Jon Gales, the owner of the www.mobiletracker.net makes close to $5000 per month just by using Google adsense. Take notice, he is merely a happy go lucky child of 19 years.
(2) For small time people who want more sales to be generated for their small time business uses Google adwords and Froogle. Even if they do not any business product, they can sale someone else product and have a handsome money in exchange for working for someone else at their own home.
Does it make a company commercially viable? Do not ask me. Watch it.
Seth Gobin a well known online advertising consultant and former Yahoo employee, used to be dubious about Google’s prospect. Not anymore “ They
If you are starting you own business, you will most likely want to look into a wholesale directory. A wholesale directory will give you the most updated and comprehensive list of products and wholesale suppliers from around the world. This will allow you to get the most bang for your buck as wholesalers can give you more product for your money rather then drop shipping. With this type of list, you will have all the needed info right at your fingertips. These types of directories are there for you when you need it, right on the internet.When you think of a directory, you think of a list of numbers that you can go to for all of your personal or business needs. But sometimes it may not be feasible to store such items in your home. If that is the case, then the wholesale directories are the ones you will want to get. You will be able to choose from a virtually unlimited numbers of wholesalers that can take care of all of your needs without having to worry about the hassle
(2) In the process give more control in their hands, empower them to generate more purchasing power and habit to help yourself as well as the industry.
See two very bottom level examples.
(1) Jon Gales, the owner of the www.mobiletracker.net makes close to $5000 per month just by using Google adsense. Take notice, he is merely a happy go lucky child of 19 years.
(2) For small time people who want more sales to be generated for their small time business uses Google adwords and Froogle. Even if they do not any business product, they can sale someone else product and have a handsome money in exchange for working for someone else at their own home.
Does it make a company commercially viable? Do not ask me. Watch it.
Seth Gobin a well known online advertising consultant and former Yahoo employee, used to be dubious about Google’s prospect. Not anymore “ They have created the first new and effective Ad medium in last 50 years. It’s brilliant” He says.
Napolean hill, author of Law of success state in his book,” No man can rise to fame and fortune without carrying others along with him. It is simply can not be done.”
It takes continuous hard work with great series of innovation in product designe, process innovation and marketing and a long period to reach ( in mature economy or market) where Google is today.
Google 6 year $321mn
EBay 9 year $322mn
Yahoo 10 year $260mn
Amazon 9 year $114mn
In his book “ The fortune at the Bottom of Pyramid” C.K. Prahalad state,”…..what is needed is a better approach to help poor, an approach that involves partnering with them to innovate and achieve sustainable win-win scenarios where the poor are actively engaged and at the same time, the companies providing product and services to them are profitable.”
I accept common people on net are not poor. But see into deep meaning of C.K. Prahalad statement,”- ……where the poor are actively engaged and at the same time………..”. That’s what e-commerce model I am talking all about. They are not poor but they are active ready to change their buying behavior. Buying behavior change is the most awesome milestone still to reach in the e-commerce to really blast off the internet economy. According to Napolean Hill, you need to help the common internet folk to see what internet can do for them.
Gil Penchina, vice-president, eBay International state,” It’s all about getting more people on the system(eBay). People on net follow very simple system. They get online almost always because they want email, then they start reading news, then they shop. Once they value in shopping, they shop repeatedly. That’s when they realize they can sell too.”
By actively involving common folk they will get more trust into e-commerce. To achieve this amazing rate of growth, e-commerce community has to accept the “inclusive Capitalism” approach. Common Internet people need to be given a big opportunity to tap into the awesome big time opportunity on internet. According to CK Prahalad, to tap into BOP segment “ Trust is prerequisite”. Big corporate or small one need to build this bridge of trust to tap into this big volume market segment.
In case of Google, it is famous for it unconventional approach and infamously trusted for unorthodox management approach of its founders Lary Page and Sergey Brin. Google just do not comprise on integrity for profit in its search results. Its user can always trust Google for its integrity to receive full support from Google for their small or big business.
Am I seems too madly in love with Google? Believe m, I am not alone.
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You can access the same article at Nuttymarketer.com website at : http://www.nuttymarketer.com/green/gorilla_marketing_ecommerce1.htm
This research work for this report is done by Mr. Arvind Kumar, founder, www.Nuttymarketer.com You may reach him at arvind@nuttymarketer.com .
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