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Digital Marketing

Pujalista case

Michał Ogonowski

on 4 July 2011

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Transcript of Digital Marketing

Product Price Place Promotion traditional marketing tools E-product marketing
Trade E-marketing E-product marketing Viral marketing SEM and SEO Promotion traditional marketing tools digital marketing tools digital marketing tools E-audit E-advertising contextual advertising e-mail marketing E-branding blogs Trade e-marketing affiliate marketing infomediaries E-communication professional & social
contacts networks RSS marketing 4P''s Traditional New Product
Promotion Personalisation
Predictive Modelling BLENDED MARKETING VIPS / celebrities traditional marketing tools "Football Packs" traditional marketing tools leaflets create curiosity, amusement, attention

play with contradictions traditional marketing tools famous people donations traditional marketing tools other traditional tools street billboards (simple and creating ambiguity)


TV advertisements at specific times

IT magazines

specific magazines (fashion, digital cameras, etc.) SEM and SEO SEM greatest exposure

relatively low cost

importance of:
overall marketing strategy SEO let's hope for frequent clicks! Viral marketing e-WoM

low cost to start

free of charge afterwards

great power & influence

if well developed may last forever Professional & social
contacts networks great spread of information

amazing help in viral marketing

no cost

possibility to update 24/7

account: endless space for info RSS marketing convenient & easy for the user

customers permanently informed

keeping constant attention

possibility of informing about any special offer

key: brief & attractive messages

...unfortunately, only 5% of frequent "users" PRODUCT - what is Pujalista? - value proposition? •thrilling & addictive

•standard auction + competition/gambling

•prize/Product of your dreams for a minimum price

•always latest product models (top quality for sure!)

“The auction business is internationally approved and is in accordance with the Spanish Law"

“We control the amounts of bids, and our system warns if any signs of gambling addiction are present”

•CSR (donation of 1 cent per bid to charity)

•creative (adaptability of products to customer needs --> new way of auctioning on the internet) what is Pujalista? its value proposition? general target:

•everyone over 18 who use internet actively
•trendsetters & early adopters


•men aged 25-34
•housewives aged 25-45
•e-bay shoppers who find prices too high or the e-bay auction process as not exciting enough Target customers: would it work in Spain? BidLeaders:
55.370 products sold
page available in English, Finnish, Danish, Norwegian, Swedish
successful in Finland (www.fiksuhuuto.com)
successful in UK (former BidBoogie, now: www.mr.123.com)
successful in Sweden (www.mrsvenson.se)

UK market supposed to be 2 years ahead of the Spanish market, therefore success in Spain might follow suit

Spain 9th/10th largest economy (national GDP)

46 million inhabitants

access to 400 million Spanish speakers

high living stanard: 15th in the world sounds cool, hmm? but... unemployment rate in 2009: approx. 16%

e-bay Spain: 22nd most visited page in Spain (vs.8th e-bay UK)

968th most visited page world-wide (vs. 99 e-bay UK)

www.mrsvenson.se suffered a strong decline in page visitors since its peak in 2009 (minus 63% in last 3 months)

increasing legal problems:
lottery (higher taxes) vs. e-commerce

economic crisis puts downward pressure on consumer spending so would it work in Spain??? enhancing trust & reliability 1.show which person/username is currently the highest bidder and provide some information of the leading bidder to other bidders (similar to e-bay)

2.show how many different people have bid on the article

3.show average number of bids per consumer

4.limit time of each bid

5.allow for paypal payment and other similar safe payment options

6.„Mr123.com follows EU law and is 100% safe and secure. Mr123.com works closely with the most recognized and trusted banks, payment providers and product suppliers. Mr123.com does not save your credit card details.” Price current auction process @ Mr.123 price of the product raised only by 1 pence at a time

all auctions start at 0 pence

if no-one else raises the price within the given time (e.g. 2 min.) on the auction clock which is visible next to the product, you win the auction and can buy the product for the price you offered

bidding costs: 1-3 bids depending on category of the product ¿ need an example? google it ! Price dutch auction auctioneer begins with a high asking price

lowered until some participant is willing to accept the auctioneer's price, or the seller's minimum acceptable price is reached

the winning participant pays the last announced price

a.k.a "clock auction" or "open-outcry descending-price auction"

convenient when speed in selling a product is key

the bidding strategy and results of this auction equivalent to those in a sealed first-price auction

the seller offers 2 or more of identical item for auction

unlike a standard auction, a dutch auction may have more than one winning bidder Price recommendations normal auction process with incremental increases of 1 cent per bid

costs per bid not higher than 1 euro per bid

lower costs for purchase of certain number of bids (e.g. 100 bids for 50 euro vs. 100 euro)

no varying prices based on location

different prices per bid for different categories of product (not more than 3 categories)

overall time of auction limited and final date/timing announced close to the individual bid

time in which a new bid needs to be made not more than 1 min. this process seems to be the most straight-forward, keeping customers´ perceived barriers to entry at a minimal level CPA - wise decision? align with the agency’s original pillar of
“Think different and big, start small”
“Get smarter with each transaction”

similar problem like:
“which kind of salary do you want: fixed or variable?”
question of believing in one´s confidence,risk attitude (r.averse vs. r.lover),financial situation of agency --> trade-off

repayment of all 3rd party expenses by BidLeaders stated in contract and by leveraging 3rd party work --> own downside risk can be limited to the degree of jobs/tasks/expenses carried out by ourselves contextual advertising similar to SEM but implemented in thematic sites rather than in search engines

web-sites with a lot of traffic

specific targetting (thematic web-sites)

requires the use of an intermediary (e.g. Espotting)

Pujalista: web-sites related to the products offered e-mail marketing checked regularly by 83,7% Internet users

easy targetting

concrete target

keeping constant "dialogue" with the customers

e.g. companies to deal with: Infousa.com, Publipost.com E-promotion on-line coupons delivered as on-line game on-line coupons delivered in format of an on-line game

very basic game

"gamers" can win free bids to spend on Pujalista

need to have Pujalista account

objective: make customers frequent users E-communication business virtual
communities affiliate marketing infomediaries Place how consumers find "our products"?
Internet + people

how do we deliver the purchased products?
FedEx, DHL, Correos Plan for future actions E-research VRM
E-surveys E-CRM
E-GRPs Group A Pujalista Marketing Campaign Anna Svistunova
Alessia Milella
Fernando Garcia Torrubia
Niko Herborg
Michal Ogonowski Q & A Thank you for your attention CPA - wise decision or not? AGENDA Froogle future plan of actions
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