Primus Securities Website Simulation


EBUS 500.1


e-Business Principles and Practices


July 21, 2004




Abstract


Primus Securities is a full service brokerage firm serving approximately 7,000 clients. In order to increase the number of clients being served Primus by further developing the website that was created nearly a year ago. By developing and maintaining a website, Primus Securities will need to evaluate customer needs, technology needed, markets strategies, and operational costs. Another important factor with maintaining a website is the ability to cover expenses with the revenue being generated.




Primus Securities Website Simulation


Primus Securities is currently a small brick and mortar, full service brokerage firm. Nearly a year ago, Primus constructed a website that provided information about the firm, frequently asked questions, and financial news as well as a search feature that allows the visitor to gain the necessary information to make a decision that would be suit their needs. Presently, 5,500 visitors visit the Primus website each month with an average of 250 consistently returning. A financial research agency conducted a poll of brokerage sites, and Primus Securities is ranked 50th out of approximately 600 brokerage website as far as the value of information being provided to clients in a pre-transaction stage. Primus is in need of moving forward with enabling clients to make online trades, with as many visitors returning it is extremely likely that more would return if they could easily place a trade online. The importance of keeping within the firm’s business plan, objectives and goals while further developing the website to accept online trading. “With the clear overarching goal of developing an e-business and website strategy that is consistent with the strategies of the business, the task is still not easy. However, with the proper strategic framework, the many business and technical challenges and conflicting priorities can be easily ranked and weighed for appropriate decision making,” as stated on the e-competitors website.


Marketing Research


David Snepenger states, “One of the difficulties companies face with marketing occurs when the owner/manager thinks he or she knows what the customer wants, how they want it, where they want it and when they want it. Not enough customers, insufficient revenues and excessive inventories indicate that the customer\'s needs are not being met. Marketing research can help find the problem and identify a solution. It helps managers to look outside of themselves for solutions.” Marketing research for Primus is necessary to evaluate what is current competitors providing and what is not being provided. The firm needs to provide competitive services to its current and potential clients not sub-par online services, which will ultimately lose business. Primus has received an encouraging response from its current clients about its current informational type website; however they have made recommendation as to improving the website, which would be to implement an online trading.


Primus needs to answer the following ten questions, while conducting the marketing research. These questions will assist in determining some important factors that the firm will be faced with while further expanding the website services to be provided. The important questions are:


“1. What should you market goods, services or both?


2. Should your marketing feature some sort of price advantage?


3. Should you emphasize your self, your quality offerings, your selection, your service or merely the existence of your business?


4. Should you take on your competition or ignore all competitors?


5. Exactly who are your competitors?


6. What are your best prospects?


7. What income groups do they represent?


8. What motivates them to buy?


9. Where do they live?


10. What do they read or watch or listen to in the way of media?”


(Snepenger, 1997)


The quantitative type of marketing research would be conducted via online surveys to current as well as potential (or simply visitors) clients that would take the time to complete the survey. The costs associated with this type of marketing research would be cost effective.


Marketing


The marketing concepts that Primus Securities needs to be aware of is 1) understanding the customer, 2) making value for your customer, 3) communicating your value to your target market, and 4) making it easy for the customer to buy (Snepenger, 1997). Primus Securities overall has a good understanding of the clients they serve. In order to