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Pricing Strategies in Cyber Market
Pricing Strategies in Cyber Market
Cyber Marketing
by
ORS Rao,
CEO & Director
Cygnus Business Consulting and
Research
www.cygnusindia.com
July 6, 2007
Agenda
• Introduction
• Cyber marketing
• Business Models
• Revenue Models
• Marketing strategy
• Pricing Mechanisms
• Major Players- Global
• Major Players- Indian
• About Cygnus
Cyber Marketing
• Clarity on products/services
• Target markets
• Value proposition
• Well designed website
• Search Engine Optimisation
• Track useful hits and analyse hits
• Fulfill responses quickly
• Willingness to change all the above
Revenue Models
• Indirect Merchandising: through affiliate partner sites
who are paid commission on sales .
• Community business model: The firm website provides
individuals with the ability to connect to other individuals
for common information sharing. Revenue is usually
generated through contextual advertising and
subscriptions.
• How do you find out the price Internet prospects are willing to pay ?
• Pricing Tools
– Market Surveys
– Pricing Strategies Software –for modeling and Simulation pricing ,revenues and
profits across the product life cycle
Pricing
• What is price? What customer / end consumer pays
for a product or service.
• When the distribution channel is long (such as when
there is a manufacturer, broker/distributor, retailer,
and end consumer), multiple mark-ups can occur
between the wholesale and the retail price.
Yahoo! Shopping A major provider of a range of The company follows the web advertising
online products and services to model as the volume of viewer traffic is
consumers and businesses quite large.
worldwide.
MSN Shopping An online comparison shopping The company has deployed a combination
site. It contains millions of of advertising-cum-infomediary model.
product offers from thousands of
retailers and allows users to search
or browse for products.
NexTag, Inc. A comparison shopping website allowing The company follows the Pay per
users to grab information about various click advertising model.
products, services, merchants and sellers.
mySimon A comparison shopping website founded The company follows the Pay per
in April, 1998 and acquired by CNET click advertising model.
Networks in 2000. The site offers
shopping recommendations, buying
advice, and side by side price comparisons
for various products.
Major Players-Global
Company Products/services Business/pricing model
Google Product Search Google Product Search The company follows the Pay
(Formerly Froogle) (formerly known as Froogle) per click advertising model.
is a price comparison service
launched by Google Inc.
• Manufacturing
• Logistics
Our Knowledge Centre -
Infrastructure
• 10,000 Sq Ft of work area in
Central Hyderabad
• High speed dedicated Internet
Back bone
• High end servers – IBM E- Series
• Over 120 Intel P IV PC Desktop
Systems
• Two-tier Power back up
• Firewalls & Secure Logins to
ensure confidentiality of the
projects
Thank you
------------------------------
O.R.S.Rao
Cygnus Business Consulting and
Research,
5th floor,
Astral Heights, Panjagutta
Hyderabad- 500034
Ph: 040-23430202-05
www.cygnusindia.com
orsrao@cygnusindia.com