Online Mktg - Product© Ramakrishna Kongalla,Assistant ProfessorIndian Institute of Tourism & Travel Management(An Organiza...
Product• In marketing, a product is anything that can be offered to a marketthat might satisfy a want or need.• In retaili...
Product classification• A product can be classified as tangible or intangible.– A tangible product is a physical object th...
• By use– In its online product catalog, retailer Sears, Roebuck andCompany divides its products into "departments", thenp...
• National and international product classifications– Various classification systems for products have been developed for ...
• Model• A manufacturer usually provides an identifier for eachparticular type of product they make, known as a model,mode...
Marketing Products Online• Reaching the point in your business’s development whereyou have a ready to market product is a ...
• 1 – Do Your Research– 1) who your audience is,– 2) what their needs and wants– 3) when they buy,– 4) how they decide on ...
• 2 – Set SMART Goals– SMART-• specific,• measurable,• attainable,• realistic, and• timetabled.– there are two types of go...
• 3 – Develop Your Elevator Pitch– An elevator pitch, which is also sometimes referred to as aunique selling point (USP), ...
• 4 – Finding an Online Home– The basic options that you have are:– Squeeze Page. This type of site consists of a single p...
• 5 – Online Promotion Plan– The online marketing tools that should be included in promotion plan will be based upon goals...
• Online PR: Online PR speaks to the methods that we use to influence theperception of online audience to product(s) or br...
Product Launch• Long gone are the days when announcing a newproduct was simply a matter of putting together anews release,...
• 1. Traditional Methods– Even though new media seems to get all the glory, traditionaltelevision, print or radio media ou...
• 2. Search Engine Optimization (SEO)– Before starting online efforts to market new product, one musthave a “home base,” w...
• 3. E-mail Marketing– E-mail marketing is a fantastic way to providespecialized content to people with whom we’ve already...
• 4. Online Advertising– Tools such as Google AdWords (and other pay-per-click services) can boostawareness and funnel par...
• 5. Social Networks– When product is ready to go, inform current customers and brandenthusiasts by updating existing soci...
• 6. Geolocation– If one have a physical location, customersfrequently utilize geolocation tools like Foursquareor Gowalla...
• 7. Group Buying Sites– Groupon, Living Social, Deal On, My Daily Threadand other collective buying sites continue to gro...
• 8. Blogger Outreach– Blogging has grown tremendously in the past five years.– Even though Technorati found that 65% of b...
• 9. Social Media Influencers– Using a strategy similar to traditional media outreach, take the time toresearch, locate an...
• 10. Online Retail Sites– Invest in partnership opportunities with well-respectedonline retail sites to improve the avail...
Thank You…!!!©Ramakrishna Kongallae-mail: artist.ramakrishna@gmail.comRtist @ Tourism
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Product

  1. 1. Online Mktg - Product© Ramakrishna Kongalla,Assistant ProfessorIndian Institute of Tourism & Travel Management(An Organization of Ministry of Tourism, Govt. of India)Rtist @ Tourism
  2. 2. Product• In marketing, a product is anything that can be offered to a marketthat might satisfy a want or need.• In retailing, products are called merchandise.• In manufacturing, products are purchased as raw materials and soldas finished goods.• Commodities are usually raw materials such as metals and agriculturalproducts, but a commodity can also be anything widely available inthe open market.• In project management, products are the formal definition of theproject deliverables that make up or contribute to delivering theobjectives of the project.• In insurance, the policies are considered products offered for sale bythe insurance company that created the contract.• A related concept is subproduct, a secondary but useful result of aproduction process.• Dangerous products, particularly physical ones, that cause injuries toconsumers or bystanders may be subject to product liability.Rtist @ Tourism
  3. 3. Product classification• A product can be classified as tangible or intangible.– A tangible product is a physical object that can be perceived by touchsuch as a building, vehicle, gadget, or clothing. An intangible product is aproduct that can only be perceived indirectly such as an insurance policy.– Intangible Data Products can further be classified into:• Virtual Digital Goods ("VDG") that are virtually located on a computer OS andaccessible to users as conventional file types, such as JPG and MP3 files, withoutrequiring further application process or transformational work byprogrammers, and as such the use may be subject to licence and/or rights ofdigital transfer, and• Real Digital Goods ("RDG") that may exist within the presentational elements of adata program independent of a conventional file type, commonly viewed as 3-Dobjects or a presentational item subject to user control or virtual transfer withinthe same visual media program platform.– Open Source Code, GNU Linux, or even Android, may manipulate and/orconvert base Virtual Digital Goods ("VDG") into process-oriented RealDigital Goods ("RDG"), as part of an application process or manufacturedservice that may be viewed on Personal Data Assistant ("PDA") or otherhand-held tangible devices or OS computer.Rtist @ Tourism
  4. 4. • By use– In its online product catalog, retailer Sears, Roebuck andCompany divides its products into "departments", thenpresents products to potential shoppers according to (1)function or (2) brand.• By association– A product line is "a group of products that are closelyrelated, either because they function in a similar manner, aresold to the same customer groups, are marketed through thesame types of outlets, or fall within given price ranges.“– Many businesses offer a range of product lines which may beunique to a single organization or may be common across thebusinesss industry.– Within the insurance industry, product lines are indicated bythe type of risk coverage, such as auto insurance, commercialinsurance and life insuranceRtist @ Tourism
  5. 5. • National and international product classifications– Various classification systems for products have been developed for economic statisticalpurposes. The NAFTA signatories are working on a system that classifies products calledNAPCS as a companion to North American Industry Classification System (NAICS).• The Aspinwall Classification System classifies and rates products based on five variables:– Replacement rate (How frequently is the product repurchased?)– Gross margin (How much profit is obtained from each product?)– Buyer goal adjustment (How flexible are the buyers purchasing habits with regard to thisproduct?)– Duration of product satisfaction (How long will the product produce benefits for the user?)– Duration of buyer search behavior (How long will consumers shop for the product?)• The National Institute of Governmental Purchasing (NIGP) developed a commodity and servicesclassification system for use by state and local governments, the NIGP Code.– The NIGP Code is used by 33 states within the United States as well as thousands ofcities, counties and political subdivisions.– The NIGP Code is a hierarchical schema consisting of a 3 digit class, 5 digit class-item, 7digit class-item-group and an 11 digit class-item-group-detail.– Applications of the NIGP Code include vendor registration, inventory itemidentification, contract item management, spend analysis and strategic sourcing.Rtist @ Tourism
  6. 6. • Model• A manufacturer usually provides an identifier for eachparticular type of product they make, known as a model,model variant, or model number.• For example, Dyson Ltd, a manufacturer of appliances(mainly vacuum cleaners), requires customers to identifytheir model in the support section of the website.• Brand and model can be used together to identifyproducts in the market. The model number is notnecessarily the same as the manufacturer part number(MPN).• A specific unit of a product is usually identified by a serialnumber.Rtist @ Tourism
  7. 7. Marketing Products Online• Reaching the point in your business’s development whereyou have a ready to market product is a wonderful feeling.• The work you must do to bring just one product to themarket online is almost identical to the work that you mustdo to market your entire business online.• In short bringing a product to market, online, will require youto create an online marketing plan around the product thatyou intend to sale.• This plan should be founded upon– 1) what you know about your audience,– 2) what you know about your audience and– 3) your product’s USP.• Those three items should serve to guide your decisions onitems such as the type of website to create and the type ofonline promotional tactics to engage in.Rtist @ Tourism
  8. 8. • 1 – Do Your Research– 1) who your audience is,– 2) what their needs and wants– 3) when they buy,– 4) how they decide on what and where to purchase– 5) where does your audience spend their time at online,– 6) what is their level of comfort with their current situationand etc.• This information will come in handy when you want todo things such as decide which social media platforms toutilize or when you want to determine the type of voiceto use in your messaging.• A list of both long and short tail keywords that audienceuses to land on website (you can find this with GoogleAnalytics)Rtist @ Tourism
  9. 9. • 2 – Set SMART Goals– SMART-• specific,• measurable,• attainable,• realistic, and• timetabled.– there are two types of goals:• online-business goals and• marketing goals.– business goals should address items such as sales, revenue, costs, andprofitability. Since the type and degree of online marketing tactics will beinfluenced by budget one want to take financial position intoconsideration when putting business goals together.– marketing goals should be designed so that product sales will allow you tomeet company’s business goals. They should include metrics such asmonthly website visits, page views, ad impressions, clicks, click trough rate,conversion rate, cost per conversion, average transaction value, and etc.Rtist @ Tourism
  10. 10. • 3 – Develop Your Elevator Pitch– An elevator pitch, which is also sometimes referred to as aunique selling point (USP), is a tool that is used to etchbrand’s unique qualities into the mind of audience.– In short its what separates one from his competitors and it iswhat let’s audience know how product will solve theirproblems.– Elevator pitch makes up the thrust of your product’smessaging strategy.– Elevator pitch should be incorporated into website, landingpages, and promotion tactics.Rtist @ Tourism
  11. 11. • 4 – Finding an Online Home– The basic options that you have are:– Squeeze Page. This type of site consists of a single page, usuallywith no navigation that begins with copy and leads into thecrescendo-a product sales offer. It works best when you have oneproduct and want the consumer to take one action-which is eithera purchase and/or to make a request for information.– Micro Site. A micro site is a miniature website that is typicallybuilt around one product; they often include several differenttypes of commercial online content such as online videos, whitepapers, and etc. This type of website works well when sellingexpensive or complicated products.– Website. This can be an ecommerce site, a blog, or a morestandard website. This format works well when you have multipleproducts to sell. Often times marketers who utilize a completewebsite to market their products have several different landingpages-one for each product or family of products.Rtist @ Tourism
  12. 12. • 5 – Online Promotion Plan– The online marketing tools that should be included in promotion plan will be based upon goals,audience’s online habits and preferences, as well as company’s financial and time constraints. Themost commonly used tools are:• Organic SEO : Organic SEO is used to impact website’s position within the searchengine results for relevant keywords.– Pros: This strategy drives targeted traffic to site and has long-term benefits that often outliveefforts. Surfers place more trust in the natural results than they do in paid results.– Cons: It takes time for the benefits of organic SEO to materialize. It can be extremely expensive.• Paid Search Engine Marketing or SEM : SEM is used to drive targeted potential buyersto site via sponsored search engine results-think “Google AdWords”.– Pros: This strategy can provide near immediate results. It also allows advertisers highly detailedanalytics. Performance based pay structure-you pay only for clicks.– Cons: Many a firm has lost their shirt doing PPC marketing. Campaigns can get expensive reallyquick and if you aren’t conducting testing you could easily get in over head.• Affiliate Marketing: Affiliate marketing is where one pay affiliates a commission onthe sales that they help to generate online.– Pros: Highly cost effective way to bring targeted buyers to site. In addition to bringing salesaffiliates also give back-links to site.– Cons: sales are dependent upon the strength of affiliates. Although relative to SEO and PPC overallaffiliate marketing costs are low the set up costs can be expensive.Rtist @ Tourism
  13. 13. • Online PR: Online PR speaks to the methods that we use to influence theperception of online audience to product(s) or brand. This includes socialmedia as well as the management of online newsroom and press releases.– Pros: Relatively inexpensive to utilize. Since online pr often results in peoplesharing information with each other about products, this tool is very similar to atraditional referral.– Cons: have little control of message as much of online pr as the consumer primarilycontrols or drives social media. Also have less control over the type of traffic thatwebsite will receive from online pr efforts-could get a high percentage of windowshoppers from this type of marketing.• Email Marketing: Email marketing is a form of marketing where the marketeruses emails as the communication medium to reach the consumer-directly.– Pros: This can be used to complement PPC marketing and it can greatly enhancethe experience of current customers. Relative to the other tools email marketingoffers a very high ROI.– Cons: can easily alienate customers if we aren’t careful. If you break the CAN-SPAMAct you could be fined up to 16,000 USD for a single violation.• Blogging: can use a business blog to communicate with audience whilebuilding web presence.– Pros: Very affordable. Easy way to establish brand online.– Cons: Can be highly time consuming. May take a long time to generate sales .Rtist @ Tourism
  14. 14. Product Launch• Long gone are the days when announcing a newproduct was simply a matter of putting together anews release, sending it off over the wire andcounting on major news outlets to spread theword.• Today, because consumers are able to getinformation from a variety of sources andplatforms, a successful product launch requires anintegrated approach;– one that includes• traditional,• social and• online marketing tools.Rtist @ Tourism
  15. 15. • 1. Traditional Methods– Even though new media seems to get all the glory, traditionaltelevision, print or radio media outreach remains an effectiveway to expose a never-before-seen product to the masses.Be sure to clearly spell out the elements of your product thatmake it newsworthy. How is it different from your existingproducts? How is it different from other similar products?What benefits does it provide to the consumer?– Don’t discount other proven methods like advertising, tradeshows, speaking opportunities, promotional events anddirect mail. Ignoring them can lead to wasted opportunities.If you invest the time to truly understand the demographicsand behaviors of the people hoping to reach, know if thesetraditional methods are worth time and investment.Rtist @ Tourism
  16. 16. • 2. Search Engine Optimization (SEO)– Before starting online efforts to market new product, one musthave a “home base,” which ideally is a search-friendly website orblog.– When launching a product, to aid both potential customers andcontribute to optimized search engine performance, considercreating a product-specific landing page that featuresphotos, descriptions and/or video.– Make sure this page is appropriately coded for search, completewith keyword-rich copy, title tags, header text, a unique URL andmeta information that succinctly describes your new product.– Make sure this page is visible and easily accessible from yourhome page, at least for its initial release.– To build online content library, consider enhancing traditionalmedia outreach efforts and social media news presence bydistributing product press release using paid services with bothtext-only and multimedia options, such as PR Newswire, PRWeband PitchEngine.Rtist @ Tourism
  17. 17. • 3. E-mail Marketing– E-mail marketing is a fantastic way to providespecialized content to people with whom we’ve alreadybuilt relationships.– Consider offering a pre-order for new product, exclusiveonly to e-mail recipients. Or, offer a sneak peek at thenew product before its released to the public.– This will help to nurture and reward existingrelationships and continue building on the trust that isalready earned.– Additionally, we may set up an e-mail drip campaignthat sends messages on a regular schedule at timedintervals to keep product or service top-of-mind withcustomers, and also to keep the sales funnel flowing.Rtist @ Tourism
  18. 18. • 4. Online Advertising– Tools such as Google AdWords (and other pay-per-click services) can boostawareness and funnel parties directly to product.– Online advertising allows one to get in front of a specific audience but withwide reach.– Another option is to do some research to determine the most widely readblogs and sites in your industry and also those frequented by people in targetmarkets.– Advertising is often the main revenue generator on these sites and blogs, soit’s a great way to begin building relationships with the editors and siteoperators for a chance to get in front of the people who are most inclined tocare about product.– Don’t overlook opportunities to advertise on social networks. Some havepredicted that $4 billion will be spent on Facebook advertising alone in 2011.– Marketers are already realizing the benefit of getting in front of this giant’smore than 500 million users.– If one choose to pursue any of these options, make sure the ads are clickableand direct all referrals to a targeted landing page on your company’s website.Rtist @ Tourism
  19. 19. • 5. Social Networks– When product is ready to go, inform current customers and brandenthusiasts by updating existing social networks.– Have a presence on one of the well-known platforms and/oranother niche social network, craft catered messages for each.– But, don’t just post to any of these social networks and walkaway.– There are many tools available to manage multiple socialnetwork profiles, keep the information up-to-date and continueto communicate with connections, while providing the socialproof needed for people to buy.– Naturally, these networks are filled with potential for people toshare information.– For this reason, make sure you provide valuable content. Trydifferent mediums for discussing new product, such as videos,podcasts, photos and/or live chats.Rtist @ Tourism
  20. 20. • 6. Geolocation– If one have a physical location, customersfrequently utilize geolocation tools like Foursquareor Gowalla to further marketing gusto.– By closing the gap between online marketingplatforms and a physical store, one can encouragesales through different channels and fullyconnecting the buying experience.– Offer special deals for business’ mayors, andpromotions for best customers;– this kind of strategy goes a long way in creating alot of buzz for new product.Rtist @ Tourism
  21. 21. • 7. Group Buying Sites– Groupon, Living Social, Deal On, My Daily Threadand other collective buying sites continue to grow inpopularity and offer the opportunity to introduceand incentivize the purchase of product to an opt-inaudience.– These sites give you the ability to customizeproduct offer by market and expand the product’sreach beyond those who are already familiar withcompany.Rtist @ Tourism
  22. 22. • 8. Blogger Outreach– Blogging has grown tremendously in the past five years.– Even though Technorati found that 65% of blogger surveyrespondents are hobbyists, it’s likely one will find several bloggersin industry who have very active communities andtraffic/subscriber numbers that blow traditional media websitesout of the water.– Blogger outreach goes hand-in-hand with traditional mediaoutreach when it comes to generating interest for a new product,and the approach and methods used are much the same.– Understand the blog, its audience and its content before sharinginformation about product. If it makes sense, offer product for theblogger to review.– When working with bloggers, remember this golden rule:• Treat them with the same respect as you would traditional journalists.Rtist @ Tourism
  23. 23. • 9. Social Media Influencers– Using a strategy similar to traditional media outreach, take the time toresearch, locate and understand the most active social media users intarget markets.– These people are at a unique advantage, having earned a large andtuned-in set of viewers, listeners and followers.– While the payoff might not be immediate, creating relationships withthese highly influential people can lead to valuable long-termopportunities.– While there is no universally accepted way to define and measureinfluence, using tools like Twitter Grader and Klout will give a goodindication of the major players in the social space and in specific industryor market.– Can also take it one step further and narrow search by category.– Tools like Twello allow you to search a directory filtered by self-identifiedexpertise, interests and professions.– This can be especially helpful for identifying Twitter users in a subfieldthat directly relates to new product.Rtist @ Tourism
  24. 24. • 10. Online Retail Sites– Invest in partnership opportunities with well-respectedonline retail sites to improve the availability and credibility ofbusiness and product.– Advertising on sites such as Amazon, eBay and GoogleProduct Search will place product in an environment searchedby people that have already identified themselves as inclinedto buy.– Amazon, specifically, offers a program called AmazonAdvantage that allows sellers to delegate order fulfillmentand shipping to Amazon.– In addition, these products are eligible for “Free Super SaverShipping” and are labeled as “shipped and sold byAmazon.com.”– This provides buyers with the peace of mind they might nothave when buying from an unknown vendor or site.Rtist @ Tourism
  25. 25. Thank You…!!!©Ramakrishna Kongallae-mail: artist.ramakrishna@gmail.comRtist @ Tourism

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