JUDY STRAUSS AND RAYMOND FROST
Chapter 9: Product – The Online Offer
What Is a Product?
ProductProduct is the
Many Products Capitalize on Internet
A product is a bundle of benefits that satisfies needs of
organizations or consumers.
Includes tangible goods, services, ideas, people, and
Products such as search engines are unique to the
internet while others simply use the internet as a new
Organizations use research to determine what is
important to customers when creating new products.
The marketing mix and CRM work together to produce
relational and transactional outcomes with consumers.
In 1998, co-founders Brin and Page delivered an innovative
new search strategy that ranked results on popularity as well
Today, Google performs 1 billion searches per day, speaks 345
languages and is the most-visited U.S. Web site.
Innovative products and strong customer focus are driving its
success and profitability.
Generates revenue from several B2B markets:
Licensing of its search services; Sales of advertising to Web advertisers.
Google pays close attention to user value, keeps costs low,
and delivers eyeballs to advertisers.
Google’s product mix includes 24 search products, 3
advertising products, 20 applications.
The Google Story
Types of Products
Define the terms
Product depth, and
Gillette’s Product Lines and Mix
Blades and Writing
razors Toiletries instruments Lighters
Mach 3 Series Paper Mate Cricket
Sensor Adorn Flair S.T. Dupont
Trac II Toni
Atra Right Guard
Double-Edge Soft and Dri
Lady Gillette Foamy
Super Speed Dry Look
Twin Injector Dry Idea
Techmatic Brush Plus
Width of the product mix
Benefits of Product Lines
Efficient Sales and
Product Mix Width
Capitalizes on established
The number of product lines
an organization offers.
Product Line Depth
Attracts buyers with different
Increases sales/profits by further
Capitalizes on economies of scale
Evens out seasonal sales patterns
The number of product items
in a product line.
Creating Customer Value
Customer value = benefits – costs
Value means entire product experience
Product awareness to product disposition
Product decisions must be made that deliver
benefits to customers.
Attributes include overall quality and specific
Notion: “You get what you pay for”
Benefits are the same features from a user
The internet increases customer benefits in many
“Broadening” and “Deepening” of product features
User personalization of the shopping experience can be
Product Benefits: Attributes
Product Benefits: Branding
A name, term, symbol, design, or combination thereof
that identifies a seller’s products and differentiates
them from competitors’ products.
When a firm registers that information with the U.S.
Patent Office, it becomes a trademark.
History of Branding
What is Branding?
Brand Awareness, Brand Recall, Brand Recognition
A brand represents a promise or value
proposition to its customers.
Brand equity is the intangible financial value of a
A great brand taps into popular culture and touches
Rank Brand Value Industry
1 Microsoft 62039 Software
2 GE 55834 Technology
3 Coca-Cola 41406 F/D/T*
4 China Mobile 39168 Telecom
5 Marlboro 38510 F/D/T
6 Wal-Mart 37567 Retail
7 Google 37445 Software
8 IBM 36084 Technology
9 Citibank 31028 Bank
10 Toyota 30201 Cars
Brand Value Industry
1 Apple Inc. 153285
2 Google 111498
3 IBM 100849
4 McDonald's 81016 F/D/T*
5 Microsoft 78243
6 Coca-Cola 73752 F/D/T
7 AT&T 69916 Telecom
8 Marlboro 67522 F/D/T
Brand Value Industry
1 Google 114260
2 IBM 86383
3 Apple 83153
4 Microsoft 76344
5 Coca Cola 67983 F/D/T*
6 McDonald's 66005 F/D/T
7 Marlboro 57047 F/D/T
Levels of Brand Relationship
Tell others about the brand
Communicate with each other
Communicate with company
Display the brand proudly
Is on the list of
Firms can use existing brand names (i.e. online
extensions) or create new brands on the internet.
Some firms may use different names offline and
online to avoid risk if the new product or channel
Sports Illustrated created thriveonline.com.
Wired Magazine changed its online version name to
Branding Decisions for Web
Creating New Brands for Internet
Good brand names should:
Suggest something about the product.
Differentiate the product from competitors.
Be capable of legal protection.
On the internet, a good brand name should be short,
memorable, easy to spell, and translate well into other
Cobranding occurs when two companies form an
alliance and put their brand names on a product:
Sports Illustrated co-brands with CNN as CNNSI
Yahoo! Visa shopping pages
Internet Domain Names
A URL (Uniform Resource Locator) is a Web site
Also called an IP address and domain name.
Domain names contain several levels.
http:// indicates that the browser should expect data
using the hypertext protocol.
The second-level is often the name of the company.
The top-level may be .com or a country name, such as
.mx for Mexico or .uk for the United Kingdom.
There are at least 40 top level names available
including .biz, .info, .pro, etc.
Internet Domain Names, cont.
The Internet Corporation for Assigned Names and
Numbers (ICANN) is a nonprofit corporation that
makes decisions about protocol and domain name
assignment, registration, etc.
GoDaddy and other sites provide domain registration
services at low cost.
More than 97% of words in the dictionary have
already been registered as domain names.
Internet Domain Names, cont.
Organizations should purchase related names and
Picking the right domain name can make a huge
Directing people correctly to a site.
Building consistency in marketing communications.
Product Benefits: Support
Customer support is a critical component in the
Customer service reps help customers with
installation, maintenance, product guarantees, etc.
to increase customer satisfaction.
Good companies combine online and offline
channels to increase their customer support.
Product Benefits: Labeling
Labeling has digital equivalents in the online world.
Online “labels” provide information about product usage,
features, and installing software.
Online “labels” also provide extensive legal information
about the software product.
Online firms may add the Better Business logo or
TRUSTe privacy shield to their sites.
Business and consumer collaboration are possible
on the Internet.
Software developers often seek customer input
about new products.
They often allow users to download new products, test
them, and provide feedback.
Customer interaction has been found to increase
Amazon seeks customers’ product reviews.
CNN encourges citizen generalists to upload videos
of breaking news.
New-Product Strategies: Product Mix
Many new products, YouTube, Yahoo!, and Twitter,
were introduced by “one-pony” firms.
Other firms have added products to an already
successful product mix.
Companies can choose among six categories of
Product Mix Strategies, cont.
1. Discontinuous innovations are new-to-the-
2. New-product lines are new products in a
different category for an existing brand
3. Additions to existing product lines.
4. Improvements or revisions of existing
5. Repositioned products can be targeted to