EMarketing: Chapter 10

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E-MarketingChapter 10
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Product

• I. Many Products Capitalize on Internet
  Properties
• A product is a bundle of benefits that satisfies
  the needs of organizations or consumers and for
  which they are willing to exchange money or other
  items of value.

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Product

• Product Dimensions
• Tangible goods
• Services
• Ideas
• People
• Places

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Product

• II. Creating Customer Value Online
• Competition for online customer attention and
  dollars is fierce
• Value benefits cost
• Value is the entire product experience
• Value is defined wholly by the mental beliefs and
  
• attitudes held by customers
• Value involves customer expectations
• Value is applied at all price levels

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Product
III. Product Benefits The Internet created a new
set of desired benefits. Web users want
effective navigation, quick downloads, site
organization, attractive and useful site design,
secure transactions, privacy, free information,
and user-friendly browsing. To capitalize on
emerging opportunities, online marketers make
four general product decisions that comprise its
bundle of benefits to meet customer needs
attributes, branding, support services, and
labeling.

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Product

• A. Attributes
• Overall quality
• You get what you pay for
• Higher quality means higher prices
• Specific features
• Color
• Taste
• Style
• Size
• Speed of service
• Internet benefits
• Atoms to bits
• Mass customization
• Tangible goods (laptops)
• Intangible goods (flexibility)
• User personalization trends and
• habits based on previous activities

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Product
B. Branding a brand includes a name, a symbol
or other identifying information. When
registered with the U.S. Patent Office, it
becomes a legally protected trademark. A brand
is a way for companies to differentiate
themselves from competitors.

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Product

• Brand Equity the intangible value of a brand,
  measured in
• dollars. Components to a great global
  brand
• Research your corporate constituencies
• information is critical
• Understand our business set guidelines
• Advance the vision decide on the desired
• reputation and strategize on how to reach
  it
• Release the power of communications all
• communications should promote the brand.
• Set up your communications infrastructure
• interact with advertising, PR, investor
• relations, and human resources.
• Include your employees in the
• message mix
• Measure performance track
• progress

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Product

• 2. Brand Relationships having a relationship
  with your
• consumers to make the product/service a
  part of their
• life.
• Yahoo
• Harley Davidson
• Apple Computer/iPod
• eBay
• Amazon
• Coca-Cola
• Blackberry

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Product
3. Branding Decisions for Web Products The
question online companies must answer to apply
existing brand names to online products, or
develop new brand names. Do we lend our brand
name as a co-brand with other firms? What domain
name do we choose?
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Products

• Using existing brand names on the web if the
  brand is well known and has strong brand equity,
  this makes sense
• 2. Creating new brands for Internet marketing
  the name is very important! Good names will
• Suggest something about the product
• Differentiate the product from competitors
• Be capable of legal protection
• Short, memorable and easy to spell
• Translate well into other languages

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Product

• C. Co-branding when two different companies
  put their
• brand names on the same product.
• CNN and Sports Illustrated formed cnnsi.com
• Microsoft and NBC formed msnbc.com
• D. Internet domain names much time and money
  is spent
• developing powerful, unique brand names
• Anatomy of a URL uniform resource locator
• (or IP internet protocol address).
  Domains contain
• several levels hostnames, sub-domains,
• top-level domains
• Registering a new domain name

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Product

• Support Services
• Critical before and after the purchase
• Customer service is an important part
• of customer relationship
• management (CRM)

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Product

• D. Labeling labels identify
• Brand names
• Sponsoring firms
• Product ingredients
• Provide instructions
• Create product recognition

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Product
IV. E-Marketing Enhanced Product
Development Developers are forced to combine
digital text, graphics, video, and audio, and
use new Internet delivery systems. They must
also integrate front-end customer service
operations with back-end data collection.
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Product

• Customer Co-design
• 1. The Internets reach creates unusual
  business
• partnerships
• Partners form synergistic clusters to design
  customer
• products that delivery value
• The Internet allows for collaboration
  electronically
• across international borders
• Research suggests that customer interaction in
  the
• early and late stages of development
  increase
• product success
• Many firms allow customers to assist in Web
  site
• creation
• Blogs
• Community bulletin boards
• RSS (really simple syndication)
• XML

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Product

• Electronic Input good marketers look
  everywhere
• for customer feedback
• Customers are quick to spread product
• strengths and weaknesses.
• 2. Firms monitor customer input electronically
• 3. Firms hire clipping services
• 4. Firms can the Internet looking for
  company and
• product discussion
• 5. Similar to the traditional clipping
  services that
• read and clip articles about the
  company

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Product

• C. Internet Properties Spawn Other
• Opportunities
• The Internet spawns new and unusual
• product opportunities
• The Internet is the great information
• equalizer
• Fierce competition
• Lots of product imitation
• Short product life cycles

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Product
D. New-Product Strategies for E-Marketing Some
companies introduce one successful online product
and build their firm around that product, while
others add the online portion to their already
successful product mix. 1. Product Mix
Strategies a. Discontinuous innovation new
to the world products Music CDs
Television Web authoring software b.
New-product lines when firms take an existing
brand name and create new products in a
completely different category
Jell-O pudding pops Microsoft Internet
Explorer

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Product

• c. Additions to existing product lines when
  organizations
• add a new flavor, size or other variation
  to a current
• product line.
• The New York Times (different version than
  hard copy)
• Super Pages (Yellow pages)
• ETrade (now offers brick-and-mortar sites)
• d. Improvements or revisions of existing
  product line new
• and improved
• Hotmail
• Yahoo Web mail
• Repositioned products current products that
• are targeted to different markets or
  promoted
• for new users
• MSNBC (younger viewers)
• f. Me-too-lower-cost products introduced to
• compete with existing brands by offering a
• price advantage
• NetZero

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Product
2. A Word About ROI Marketers need a way to
gauge the success of a company, ROI (return on
investment) has been the generally accepted
method. Many experts are requiring a break even
point within 3 months of inception to okay an
online project.