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  1. 1. Online Mktg - Pricing© Ramakrishna Kongalla,Assistant ProfessorIndian Institute of Tourism & Travel Management(An Organization of Ministry of Tourism, Govt. of India)Rtist @ Tourism
  2. 2. Pricing• Business models– Who is your customer?– What does your customer value?– How do you make money?• Strategy– How will you beat your competitors?– How do you differentiate what you do?• Publishing permits some sloppiness here because eachpublication is ‘different’Rtist @ Tourism
  3. 3. Rtist @ TourismStrategic Planning Process is requireduser needsplanning competitiontrends
  4. 4. • Creating value- typical publishing value chain– Gathering– Selecting and organizing– Synthesizing– Distributing– Key drivers ~ quality, speed and cost• Creating value - where will you add it?– Gathering– Selecting and organizing– Synthesizing– DistributingRtist @ Tourism
  5. 5. • Extracting value – which customer segmentswill you serve and how?– Institutional• Corporate• Academic• Government– Individual• Society and association Members• Non-members– Domestic/national– Non-domestic– What % of your revenue comes from each?– Is that changing online?– Are you making the most of the ‘reach’ of online?Rtist @ Tourism
  6. 6. – Unit of online content – what is it?– What do you offer customers?– Do all customers want the same products andservices?– Do you build to order or prepackage?– Can you sell more content by enabling moregranular choices – at the article/chapter vs thewhole publication level?Rtist @ Tourism
  7. 7. In order to make a change from “prepackaged” content• Effective and reliable distribution• Understanding of what customers want• Ability to create new products and services– In theory every customer can buy something different onlineRtist @ Tourism
  8. 8. What has changed online?• Digital assets – not used up by consumption• Economies of scale – communicate with authors, readersand customers faster and cheaper• Economies of scope – extract value across many differentand disparate markets• Customer records – cost of keeping them and using themlow– Publishers have the opportunity to sense and respond todemands rather than simply making and selling productsRtist @ Tourism
  9. 9. Online pricing models• Institutional/organizational site license soldto libraries/corporations• Individual/members subscriptions• Pay-per-view article sales– Price of each has an impact on the othersRtist @ Tourism
  10. 10. What is the cost of access?• Pecuniary cost – even small per article feessuppressed usage• Non-pecuniary cost – time and inconvenienceto obtain access– Number of screens to navigate– Amount of external information to recall– Action required to have costs subsidizedRtist @ Tourism
  11. 11. What worked well?• Generalized subscription purchasing – was a success• It had the following features:-– Opened up access to all content by all users– User defined the subscription– It was pre-paid• User cost of access – money and effort – effects thenumber of articles readers accessRtist @ Tourism
  12. 12. • Examples of article pricingRtist @ TourismProduct Cost ($) Number ofarticlesCost/articleInter-library loan (ILL) 30 1 30Document Delivery 25 1 25Pay-per-article- PEAK 7 1 7Institutional subscription ~one online journal431 143 3Journal bundle price ~ largesociety publisher24,995 44,500 0.56Journals and proceedings ~large society publisher48,588 699,289 0.07
  13. 13. Online Marketing Pricing• 3 general categories of internet marketing services.• Internet Marketing Pricing• SEO Pricing – In general, SEO work can either be done on an existing site, or anew SEO-friendly website can be created. Based on these situations, provideunique and customized proposals to every potential client of Marketing aftergathering details and performing own research.• PPC Pricing – Pay-Per-Click Advertising (PPC), when done correctly, can andusually should be a major part of every companys online strategies. Thepower of PPC to learn and to test is extremely valuable. Since everycompany, product, and industry is unique, PPC efforts always have to be100% customized• Website Design Pricing – every company should have a good, attractivewebsite. However, designing and building the website is only the first step inmaking profits online.Rtist @ Tourism
  14. 14. Thank You…!!!©Ramakrishna Kongallae-mail: artist.ramakrishna@gmail.comRtist @ Tourism