eTrade 2000 Annual Report Download - page 26

Bonus points to members who open accounts with us.
Marriott. Tiered points offers presented to the Marriott Rewards customer base has become an efficient new
account driver.
Others
Intuit. Our alliance with Intuit began in 1998 with a new account message and offer in each of 3,000,000
Turbo-Tax software packages. In 1999, we offered a custom version of its popular software to everyone who
opened a new E*TRADE IRA account. In 2000, our partnership continues with both offers presented to
Turbo-Tax customers.
MARKETING
Our marketing strategy is based on an integrated marketing model that employs a mix of communications media. The goals of our
marketing programs are to increase our brand name recognition, attract new customers, and to increase the value of existing customers.
We pursue these goals through advertising, marketing on our Web site and other online opportunities, direct one-on-one marketing,
affinity marketing programs, public relations, and co-marketing programs. All communications with the public by our U.S.
broker-dealer subsidiaries, including E*TRADE Securities, are regulated by the NASDR.
Our advertising builds awareness of and preference for E*TRADE, positioning E*TRADE as a better way of handling securities
transactions, accessing financial and market data, and managing individual investor portfolios. We use promotionally-oriented Direct
Response TV which has proven to be an efficient way to generate accounts. In addition to television, we use print advertising in a
broad range of financial and business publications. Advertising directs prospects to call a 1-800 number or to go to www.etrade.com.
Through the E*TRADE Web site, prospects can get detailed information on our services, use an interactive demonstration, play the
E*TRADE Game, request additional information, and complete an account application online.
In fiscal 2000 we transitioned from the “Telebank’ ’ brand to “E*TRADE Bank.” We believe that linking our high-value integrated
financial products, superior customer service and “anytime, anywhere, anyway” convenience to the well-known “E*TRADE” brand
will enable us to attract a growing number of customers. We also believe that building low-cost and convenient delivery channels for
our products – including the online and wireless platforms—will resonate with consumers increasingly attracted to alternative channels
for the delivery of their financial services. In pursuing our strategy this year, we also increased our marketing expenditures
significantly to implement a targeted, national advertising campaign and marketing initiative. Our marketing plan targets customers in
all 50states who value the convenience and premium rates of our high-value products. The three main initiatives of our marketing plan
are national advertising through out-of-home, print, radio and online media; marketing alliances with
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popular Web sites such as Yahoo! and E-Loan; and affinity partnerships with national organizations such as Sam’ s Club.
Public Relations
Our external corporate communications team is chartered with protecting, promoting and strengthening our corporate reputation and
brand. Through proactive outreach to local and national broadcast/print media, the external team communicates our value proposition
and corporate strategy to a broad consumer audience. As a result, the Company has received extensive coverage from major media
outlets and publications , including BusinessWeek, The New York Times, The Wall Street Journal, Time, CNN, CNBC and many more.
The team is also responsible for the strategic placement of executive speaking opportunities.
TECHNOLOGY DEVELOPMENT
Investment
We have made significant investments in our technology over the last three years. Investments have been made in all areas of
technology including development, operations, transaction capacity, and our data center facilities. As the business and markets have
grown, we have made the necessary technological investments to continue our technology leadership in the online financial services
business. Technology development expenses were $142.9 million, $79.9 million and $36.2 million in fiscal 2000, 1999 and 1998
respectively. In addition, costs of $61.5 million, $12.8 million and $10.2 million, in fiscal 2000, 1999 and 1998, respectively, were
capitalized to internally developed software.
We have established technology centers in both Rancho Cordova, California and Alpharetta, Georgia which support our U.S. domestic
2002. EDGAR Online, Inc.