Module 5
E-Marketing Management
E-Marketing Management
Marketing Mix - 4Ps
1) Product
2) Price
3) Place (Distribution)
4) Promotion (IMC)
1) Product: The Online Offer
• Definition:
“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”
• The term product includes items such as tangible goods,
services, ideas, people, and places.
• All of these can be marketed on the internet (people? Yes,
politicians, sports figures, movie and music stars, and dating
services).
Some new products
 Search engines (Google, Bing, Yahoo etc)
 Smartphone apps (Uber, Ola, Airbnb etc)
 Social networks (Facebook, Youtube, Twitter)
are unique to internet.
• Music simply uses the internet as a distribution
channel.
• Some like amazon, flipkart use the internet as
an electronic storefront
Creating Customer
Value Online
Customer Value
• Customer Value = Benefits – Costs
1) Customer value is the entire product experience.
(from awareness, all customer touch points, product usage, post-purchase
customer service), compliments from friends, family etc, Fun while using
product or service.
2) Value is defined wholly by the mental beliefs and attitudes held by
customers.
(Even if company works to develop the right value proposition, it is the
customers’ perceptions that count)
3) Value involves customer expectations.
(if the actual product experience falls short of their expectations,
customers will be disappointed).
4) Value is applied at all price levels.
(Both a $0.05 micropayment for an online article in a newspaper
archive and a $2 million e-commerce computer application can provide value)
Product Benefits
Many of the benefits customers seek online
1. CONNECTING
2. CREATING
3. ENJOYING
4. LEARNING
5. TRADING
6. GIVING
WEB USERS WANTS
• Effective We Navigation
• Quick Download Speed
• Clear Site Organization
• Attractive And Useful
• Site Design
• Secure Transactions
• Privacy
• Free Information Or
Services
• User-friendly Web Browsing
• E-mail Reading
• Place To Join Conversations
• Curate Images, Videos
• Create And Upload Content
• Useful And Fun Applications
• Location Services
• Fast Web Site Downloading
FIVE GENERAL PRODUCT DECISIONS
1.ATTRIBUTES
2.BRANDING
3.SUPPORT SERVICES
4.LABELING
5.PACKAGING
1. ATTRIBUTES• Product attributes include overall quality and specific
features.
• Most customers know “you get what you pay for.”
• Higher and consistent quality generally means higher prices.
• Elements as color, taste, style, size, and online speed of
service, or the ability to connect and personalize.
• Benefits, on the other hand, are the same features from a
user perspective.
(what will the attribute do to solve problems or meet needs and
wants?)
Example
• Facebook hosts a lot of page profiles
(attribute)
• That help users connect with old and
new friends quickly online (benefit).
• Product benefits are key components in
the value proposition.
Internet Increases Customer Benefits
• Most basic is the move from ATOMS TO BITS (Internet’s Key
Properties)
• Opened the door for media, music, software, and other digital
products to be presented on the Web.
• Mass customization is a very important benefit.
• Tangible products (Laptops)
• Intangible Products (Streaming Movies, songs, Taxi service Uber)
tremendous flexibility.
• Smartphone apps changing and customizing is faster and easier
• Customize product online without leaving their keyboard
USER PERSONALIZATION
• User personalization is another form of customization.
• Example Website Design, Online stores
• Web site registration and other techniques.
• Web sites greet users by name and suggest product offerings
of interest based on previous purchases.
• Returning customer gets recommendations, purchase
history, order status, wish lists. Etc
• Social networking sites
• Facebook page, Youtube page, Twitter, Instagram pages all
are different for different users.
2. Branding
• A brand includes a name (McDonald’s), a symbol (golden arches),
or other identifying information.
• When a firm registers that information with the Patent Office, it
becomes a trademark and is legally protected from imitation.
• “A trademark is a brand name. A trademark or service mark
includes any word, name, symbol, device, or any combination,
used or intended to be used to identify and distinguish the
goods/services of one seller or provide from those of others, and
to indicate the source of the goods/services”
• Dictionary words can’t be trademarked
for Web site use—companies can own
books.com or music.com but can’t
trademark the word book for a
company name.
• A brand is much more than its graphic
and verbal representation in marketing
materials
BRAND IS ALSO THE FOLLOWING
• A promise to customers.
• Beliefs in the market’s mind about what the brand
delivers.
• Innovation to the product that continues t improve on
the brand promise.
• Generates trust in customers that the brand will deliver
on the promise.
• The sum of all customer touch point experiences.
• A relationship between buyer and brand
• BUILDS TRUST
• LOWERS RISK
• REDUCING THE STRESS OF MAKING
PRODUCT SWITCHING DECISIONS.
• Concern over security and privacy issues and
because firms and customers are often
separated by large distances.
• some brands, such as Wal-Mart in the United States or Aldi food
stores in Germany and Australia, have a brand name
synonymous with LOW PRICES AND FAIRLY GOOD QUALITY.
• The value proposition is preserved in these cases with some
buyers because the products provide FEWER BENEFITS FOR LOWER
COSTS.
• Customers and prospects become aware of brands and develop
BELIEFS AND ATTITUDES based on every brand contact, also
called TOUCH POINTS.
• Some contacts are through ONE-WAY MEDIA such as advertising
and packaging, and others are through TWO-WAY COMMUNICATION
such as conversations with the firm’s customer service or
salespeople on the phone, at trade shows, on Web sites, or in
company-initiated e-mail.
BRAND EQUITY
• Brand equity is the intangible value of a
brand, measured in dollars
Brand Relationships and Social Media
FIVE POSSIBLE LEVELS OF BRAND RELATIONSHIP INTENSITY:
1. Advocacy—customers tell others about their favorite
brands, both online and Offline
2. Community—customers in communities, such as
Facebook, communicate about brands with each other.
3. Connection—customers communicate with the company
between purchase events.
4. Identity—customers proudly display the brand name of
products they use.
5. Awareness—consumers include the brand in their list of
possible purchases
THREE ROLES FOR SOCIAL MEDIA IN
BRANDING
(1)Build Trust Through Social Media Relationships
With Consumers
(2) Differentiate The Brand In Social Media To
Enhance The Emotional Connections
(3) Nurture Consumers In Social Media To Build Brand
Loyalty
Marketing leaders believe in B2C
market Brand building
1) WEB AND INTERNET
2) SOCIAL MEDIA
3) SEARCH MARKETING
4) CONTENT DEVELOPMENT
5) E-MAIL MARKETING
Marketing leaders believe in B2B
market Brand building
1) WEB AND INTERNET
2) CONTENT DEVELOPMENT
3) EMAIL
4) SOCIAL MEDIA
Branding Decisions for Web Products
Using Existing Brand Names on the Web:
• An existing brand name can be used for any product extensions,
and it makes sense when the brand is well known and has strong
brand equity.
• For example, Amazon added music CDs, videos, software,
electronics, and nearly everything else to its product mix. It is
beneficial for Amazon to use its well-established online brand
name for these other offerings rather than launch a new electronic
storefront with another name for different product categories
• Products with offline sales introduce online extensions.
• Some companies may not want to use the same brand
name online and offline, for several reasons.
1) new product or channel is risky, the firm would run the risk
of jeopardizing the brand’s good name by having it
associated with a possible product failure
• A powerful internet success might inadvertently reposition
the offline brand.
• Most internet products carry a high-tech, cool, and young
image, which will carry over to offline branded products
• Finally, sometimes the firm wants to change the name
slightly for the new market or channel, as a way of
differentiating the online brand from the offline brand.
Creating New Brands for Internet
Marketing
• If an organization wants to create a new internet
brand, it is critical to select a good Name.
• Good brand names should suggest something about
the product.
• Should differentiate the product from competitors
• Should be suitable for legal protection.
• On the internet, a brand name should be short,
memorable, easy to spell, and translate well into other
languages
CO-BRANDING
• This occurs when two different companies form
an alliance to work together and put their brand
names on the same product or service.
• Is quite common on the internet and is a good
way for firms to build synergy through expertise
and brand recognition, as long as their target
markets are similar.
Internet Domain Names
• Organizations spend a lot of time and money
developing powerful, unique brand names for
strong brand equity
• Using the company trademark or one of its brand names
in the Web address helps consumers find the site quickly
www.coca-cola.com
Disney’s address is www.disney.go.com
• A URL (uniform resource locator) is a Web site address.
It is also called an IP address (internet protocol) and a
domain name.
• This categorization scheme is clever; it is similar to
telephone area codes in the way it helps computer users
find other computers on the internet network
• URLs are actually numbers, but because
users can more easily remember names, a
domain name server translates back and
forth.
• Without this system you’d be saying to a
friend: “Check out this awesome site at
71.24.607.304
• Seven generic top-level domain names that must be
used by the type of organization indicated in the
name (.com, .edu, .gov, .int, .mil, .net, and .org).
• 250 two-letter country top-level domain names (e.g.,
.de, .mx. and pn, for the Pitcairn Islands with a
population of 50 residents).
• Many other general names, such as .biz, .info, .pro,
.name, .coop, .aero, .museum, .asia, .cat, .jobs,
.mobi, .tel, and .travel (see icann.org).
• GoDaddy, along with many other sites,
provides domain registering services for a mere
$12.99 a year, including an e-mail address
(godaddy.com).
• For this low price, students can leave less
professional yahoo.com and other Web-based
e-mail addresses behind and get a more
professional address to impress recruiters (such
as firstname.lastname@lastname.com).
• Incidentally, when registering a name,
organizations would be well advised to also
purchase related names for several reasons
• Second, users don’t always know what URL to type
to find a company.
Example:
Coca-Cola owns cocacola.com, coca-cola.com, and
coke.com; cocacolacompany.com, the
cocacolacompany.com, and cocacola.net, .info, .us.,
.org, .me, and many more.
3. Support Services
• Customer support—during and after purchases— is a critical
component in the value proposition.
• Customer service representatives should be knowledgeable and
concerned about customer experiences.
• Sites that care about developing relationships with their customers,
such as Amazon.com, place some of their best people in customer
support.
• Some products need extra customer support
• Help customers with installation, maintenance problems, product
guarantees, and service warranties, and in general work to increase
customer satisfaction with the firm’s products.
• Some companies combines online and offline
channels to increase support services.
• Online chat bots are an important and growing part
of customer service.
• Live chat online occurs when a user is at a site and
types into a box to communicate in real time with a
company customer service representative—either
during the purchase process or a postpurchase
customer service
4. Labeling
• Product labels identify brands, sponsoring firms, and
product ingredients, and often provide instructions
for use and promotional materials.
• Labels on tangible products create product
recognition and influence decision behaviour at the
point of purchase.
• Labeling has digital equivalents in the online world.
For online services, terms of product usage, product
features, and other information comprise online
labeling at Web sites.
Example
• When users download iTunes software for
organizing their iPod music, they can first read
the “label” to discover how to install and use the
software.
• Many companies have extensive legal
information about copyright use on their Web
pages.
• the Federal Trade Commission has a “label” page
discussing its privacy policy
• Online labeling can serve many of the same
purposes on the Web as offline.
• Another validating label is the TRUSTe privacy shield. If
firms agree to certain terms of use regarding.
• Privacy of customer information collected at their site,
they may register at TRUSTe, download the TRUSTe seal,
and affix it to their Web sites as part of a label.
• Finally, many sites present social media logos as labels
on their pages. The purpose is to allow sharing,
commenting, or registering via Facebook and others.
• These logos add to the credibility and technology
competence of the original company.
E-Marketing-Enhanced Product Development
• The move from atoms to bits adds complexity to online
product offers. Developers must now combine digital text,
graphics, video, and audio and use new internet delivery
systems.
• They must integrate front-end customer service operations
with back-end data collection and fulfillment methods to
deliver product. These requirements create steep learning
curves for traditional companies as they work these factors
into the product value proposition
Customer Codesign via Crowdsourcing
Offline market
• The power shift to buyers, when combined with the internet’s
global reach, allows for many unusual business partnerships and
for both business and consumer collaboration.
• Partners form synergistic clusters to help design customer
products that deliver value
Example
• Dell Computer contractually gave one supplier 25 percent of its
volume requirement for computer monitors, the supplier
assigned engineers to work with Dell’s product development
team
Laptops, Smartphones.
Online Market
• Internet technology allows this type of collaboration to
occur electronically among consumers across international
borders as well.
• For example, software developers commonly seek
customer input as they develop the product.
• You may have seen Web sites, mobile apps, and others
listed as “Beta version.” This means that the product is in a
development stage and users will try it and give feedback
to the company about possible changes to improve
usability.
• This process repeats as the company improves the product
based on this feedback and releases newer beta versions
for customer testing
Examples
• Internet browsers,
• CRM software
• Android apps
• iOS apps and many others use this basic
process
• LEGO Group, a toy maker
• software for creating virtual LEGO designs
Consumers then upload their fancy palaces
and robots to the LEGO gallery online, where
Internet Properties Spawn
Other
Opportunities
• Many organizations engage customers by inviting
them to create advertisements and Web site content
on their sites or social media pages.
• Blogs are one technology that increased this co-
development of Web content. Bloggers invite
comments to their posts, thus increasing the content
value for readers.
• Good marketers look everywhere for customer
feedback to improve products, even setting up blogs
for the sole purpose of gathering customer ideas and
input
Internet Properties Spawn Other
Opportunities
• The internet’s unique properties generated
unusual new products and companies.
• Example Location-based services (LBS)
• Global positioning devices (GPS) in smartphones
and other mobile online devices track user
locations and send to friends via “check-ins”
while at restaurants, retailers, and many other
locations
• Online auctions are a perfect example.
• Not long after eBay came online, Amazon.com
and others began offering auctions.
• B2B, B2C, C2C and other markets.
• Taking short product life cycles to an extreme.
• Wallet services are best example, Paytm,
mobikwik, freecharge
• Payment banks (Airtel)
New-Product Strategies for
E-Marketing
• Many new products, such as YouTube, Yahoo!,
and Twitter.com, were introduced by “one-pony”
firms, built around the company’s first successful
product.
• Other organizations, such as Microsoft, added
internet products to an already successful
product mix.
Example
Windows OS, Internet explorer, Microsoft Edge,
Office etc.
Product Mix Strategies
• Marketers integrate hot product ideas for the internet
into current product mixes
• Companies can choose among
SIX CATEGORIES OF NEW-PRODUCT STRATEGIES
1. DISCONTINUOUS INNOVATIONS
2. NEW-PRODUCT LINES
3. ADDITIONS TO EXISTING PRODUCT LINES
4. IMPROVEMENTS OR REVISIONS OF EXISTING PRODUCTS
5. REPOSITIONED PRODUCTS
6. ME-TOO LOWER-COST PRODUCTS
1. DISCONTINUOUS INNOVATIONS
• New-to-the-world products never seen before.
• Computers, smartphones were discontinuous
innovations when introduced.
• Digital cameras etc
Especially on Internet
• Web page design software
• Shopping Agents
• Search Engine etc
• Social networking is another discontinuous
innovation—the idea that each internet user
has a rich array of contacts for fun and profit
when tapped.
Smartphone Applications
1.Android Play store
2.iOS store
3.Windows store
4.Amazon appstore
5.Blackberry World
Number of apps available in leading app stores as of March
2017
• most popular technology blog online Engadget
(engadget.com).
• Mashable.com
DISRUPTIVE INNOVATION
is a special category of discontinuous innovation
that changes the existing market in a drastic way.
1. Digital Music Downloads disrupted CD market
2. Desktop publishing disrupted newspaper and magazine
market
3. GPS devices disrupted physical paper map market
4. Facebook and twitter disrupted the market how people
communicate and share ideas
2. New-Product Lines
• These are introduced when companies take an existing
brand name and create new products in a completely
different category.
• For example, Microsoft created a new line when it
introduced its Internet Explorer Web browser.
• Because the Netscape browser was already available at
that time, Microsoft’s entry was not a discontinuous
innovation.
• And Netscape is history now.
3. Additions to Existing Product Lines
• This occurs when organizations add a new
flavor, size, or other variation to a current
product line.
• Google has many different product lines
(search, advertising, applications, enterprise,
and more)—all leveraging the great brand
name and helping to increase brand equity.
4. Improvements or Revisions of Existing Products• These products are introduced as “new and
improved” and, thus, replace the old
product.
• On the internet, firms are continually
improving their brands to add value and
remain competitive
5.Repositioned Products
• These are current products that are either targeted to different
markets or promoted for new uses.
• Yahoo! began as a search directory on the Web and then
repositioned itself as a portal (an internet entry point with many
services), and then as a Life Engine.
• By doing so, Yahoo! first positioned itself against the early
leader, America Online, and is now positioning away from prime
competitor, Google.
• MSNBC repositioned its news organization for younger viewers
6. Me-Too Lower-Cost Products
• These are introduced to compete with
existing brands by offering a price advantage.
• The internet spawned a multitude of free
products with the idea of building market
share so the firm would have a customer
base for marketing its other products
Microsoft Zune Vs. Apple iPod
Android vs Apple
Barnes & Noble Vs. Amazon
E marketing management 4Ps
E marketing management 4Ps
E marketing management 4Ps

E marketing management 4Ps

  • 1.
  • 2.
    E-Marketing Management Marketing Mix- 4Ps 1) Product 2) Price 3) Place (Distribution) 4) Promotion (IMC)
  • 3.
    1) Product: TheOnline Offer • Definition: “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” • The term product includes items such as tangible goods, services, ideas, people, and places. • All of these can be marketed on the internet (people? Yes, politicians, sports figures, movie and music stars, and dating services).
  • 4.
    Some new products Search engines (Google, Bing, Yahoo etc)  Smartphone apps (Uber, Ola, Airbnb etc)  Social networks (Facebook, Youtube, Twitter) are unique to internet. • Music simply uses the internet as a distribution channel. • Some like amazon, flipkart use the internet as an electronic storefront
  • 5.
  • 7.
    Customer Value • CustomerValue = Benefits – Costs 1) Customer value is the entire product experience. (from awareness, all customer touch points, product usage, post-purchase customer service), compliments from friends, family etc, Fun while using product or service. 2) Value is defined wholly by the mental beliefs and attitudes held by customers. (Even if company works to develop the right value proposition, it is the customers’ perceptions that count) 3) Value involves customer expectations. (if the actual product experience falls short of their expectations, customers will be disappointed). 4) Value is applied at all price levels. (Both a $0.05 micropayment for an online article in a newspaper archive and a $2 million e-commerce computer application can provide value)
  • 8.
    Product Benefits Many ofthe benefits customers seek online 1. CONNECTING 2. CREATING 3. ENJOYING 4. LEARNING 5. TRADING 6. GIVING
  • 9.
    WEB USERS WANTS •Effective We Navigation • Quick Download Speed • Clear Site Organization • Attractive And Useful • Site Design • Secure Transactions • Privacy • Free Information Or Services • User-friendly Web Browsing • E-mail Reading • Place To Join Conversations • Curate Images, Videos • Create And Upload Content • Useful And Fun Applications • Location Services • Fast Web Site Downloading
  • 10.
    FIVE GENERAL PRODUCTDECISIONS 1.ATTRIBUTES 2.BRANDING 3.SUPPORT SERVICES 4.LABELING 5.PACKAGING
  • 11.
    1. ATTRIBUTES• Productattributes include overall quality and specific features. • Most customers know “you get what you pay for.” • Higher and consistent quality generally means higher prices. • Elements as color, taste, style, size, and online speed of service, or the ability to connect and personalize. • Benefits, on the other hand, are the same features from a user perspective. (what will the attribute do to solve problems or meet needs and wants?)
  • 12.
    Example • Facebook hostsa lot of page profiles (attribute) • That help users connect with old and new friends quickly online (benefit). • Product benefits are key components in the value proposition.
  • 13.
    Internet Increases CustomerBenefits • Most basic is the move from ATOMS TO BITS (Internet’s Key Properties) • Opened the door for media, music, software, and other digital products to be presented on the Web. • Mass customization is a very important benefit. • Tangible products (Laptops) • Intangible Products (Streaming Movies, songs, Taxi service Uber) tremendous flexibility. • Smartphone apps changing and customizing is faster and easier • Customize product online without leaving their keyboard
  • 14.
    USER PERSONALIZATION • Userpersonalization is another form of customization. • Example Website Design, Online stores • Web site registration and other techniques. • Web sites greet users by name and suggest product offerings of interest based on previous purchases. • Returning customer gets recommendations, purchase history, order status, wish lists. Etc • Social networking sites • Facebook page, Youtube page, Twitter, Instagram pages all are different for different users.
  • 15.
    2. Branding • Abrand includes a name (McDonald’s), a symbol (golden arches), or other identifying information. • When a firm registers that information with the Patent Office, it becomes a trademark and is legally protected from imitation. • “A trademark is a brand name. A trademark or service mark includes any word, name, symbol, device, or any combination, used or intended to be used to identify and distinguish the goods/services of one seller or provide from those of others, and to indicate the source of the goods/services”
  • 16.
    • Dictionary wordscan’t be trademarked for Web site use—companies can own books.com or music.com but can’t trademark the word book for a company name. • A brand is much more than its graphic and verbal representation in marketing materials
  • 17.
    BRAND IS ALSOTHE FOLLOWING • A promise to customers. • Beliefs in the market’s mind about what the brand delivers. • Innovation to the product that continues t improve on the brand promise. • Generates trust in customers that the brand will deliver on the promise. • The sum of all customer touch point experiences. • A relationship between buyer and brand
  • 18.
    • BUILDS TRUST •LOWERS RISK • REDUCING THE STRESS OF MAKING PRODUCT SWITCHING DECISIONS. • Concern over security and privacy issues and because firms and customers are often separated by large distances.
  • 19.
    • some brands,such as Wal-Mart in the United States or Aldi food stores in Germany and Australia, have a brand name synonymous with LOW PRICES AND FAIRLY GOOD QUALITY. • The value proposition is preserved in these cases with some buyers because the products provide FEWER BENEFITS FOR LOWER COSTS. • Customers and prospects become aware of brands and develop BELIEFS AND ATTITUDES based on every brand contact, also called TOUCH POINTS. • Some contacts are through ONE-WAY MEDIA such as advertising and packaging, and others are through TWO-WAY COMMUNICATION such as conversations with the firm’s customer service or salespeople on the phone, at trade shows, on Web sites, or in company-initiated e-mail.
  • 20.
    BRAND EQUITY • Brandequity is the intangible value of a brand, measured in dollars
  • 23.
    Brand Relationships andSocial Media FIVE POSSIBLE LEVELS OF BRAND RELATIONSHIP INTENSITY: 1. Advocacy—customers tell others about their favorite brands, both online and Offline 2. Community—customers in communities, such as Facebook, communicate about brands with each other. 3. Connection—customers communicate with the company between purchase events. 4. Identity—customers proudly display the brand name of products they use. 5. Awareness—consumers include the brand in their list of possible purchases
  • 24.
    THREE ROLES FORSOCIAL MEDIA IN BRANDING (1)Build Trust Through Social Media Relationships With Consumers (2) Differentiate The Brand In Social Media To Enhance The Emotional Connections (3) Nurture Consumers In Social Media To Build Brand Loyalty
  • 25.
    Marketing leaders believein B2C market Brand building 1) WEB AND INTERNET 2) SOCIAL MEDIA 3) SEARCH MARKETING 4) CONTENT DEVELOPMENT 5) E-MAIL MARKETING
  • 26.
    Marketing leaders believein B2B market Brand building 1) WEB AND INTERNET 2) CONTENT DEVELOPMENT 3) EMAIL 4) SOCIAL MEDIA
  • 27.
    Branding Decisions forWeb Products Using Existing Brand Names on the Web: • An existing brand name can be used for any product extensions, and it makes sense when the brand is well known and has strong brand equity. • For example, Amazon added music CDs, videos, software, electronics, and nearly everything else to its product mix. It is beneficial for Amazon to use its well-established online brand name for these other offerings rather than launch a new electronic storefront with another name for different product categories • Products with offline sales introduce online extensions.
  • 28.
    • Some companiesmay not want to use the same brand name online and offline, for several reasons. 1) new product or channel is risky, the firm would run the risk of jeopardizing the brand’s good name by having it associated with a possible product failure • A powerful internet success might inadvertently reposition the offline brand. • Most internet products carry a high-tech, cool, and young image, which will carry over to offline branded products • Finally, sometimes the firm wants to change the name slightly for the new market or channel, as a way of differentiating the online brand from the offline brand.
  • 29.
    Creating New Brandsfor Internet Marketing • If an organization wants to create a new internet brand, it is critical to select a good Name. • Good brand names should suggest something about the product. • Should differentiate the product from competitors • Should be suitable for legal protection. • On the internet, a brand name should be short, memorable, easy to spell, and translate well into other languages
  • 30.
    CO-BRANDING • This occurswhen two different companies form an alliance to work together and put their brand names on the same product or service. • Is quite common on the internet and is a good way for firms to build synergy through expertise and brand recognition, as long as their target markets are similar.
  • 31.
    Internet Domain Names •Organizations spend a lot of time and money developing powerful, unique brand names for strong brand equity
  • 32.
    • Using thecompany trademark or one of its brand names in the Web address helps consumers find the site quickly www.coca-cola.com Disney’s address is www.disney.go.com • A URL (uniform resource locator) is a Web site address. It is also called an IP address (internet protocol) and a domain name. • This categorization scheme is clever; it is similar to telephone area codes in the way it helps computer users find other computers on the internet network
  • 33.
    • URLs areactually numbers, but because users can more easily remember names, a domain name server translates back and forth. • Without this system you’d be saying to a friend: “Check out this awesome site at 71.24.607.304
  • 34.
    • Seven generictop-level domain names that must be used by the type of organization indicated in the name (.com, .edu, .gov, .int, .mil, .net, and .org). • 250 two-letter country top-level domain names (e.g., .de, .mx. and pn, for the Pitcairn Islands with a population of 50 residents). • Many other general names, such as .biz, .info, .pro, .name, .coop, .aero, .museum, .asia, .cat, .jobs, .mobi, .tel, and .travel (see icann.org).
  • 35.
    • GoDaddy, alongwith many other sites, provides domain registering services for a mere $12.99 a year, including an e-mail address (godaddy.com). • For this low price, students can leave less professional yahoo.com and other Web-based e-mail addresses behind and get a more professional address to impress recruiters (such as firstname.lastname@lastname.com).
  • 36.
    • Incidentally, whenregistering a name, organizations would be well advised to also purchase related names for several reasons • Second, users don’t always know what URL to type to find a company. Example: Coca-Cola owns cocacola.com, coca-cola.com, and coke.com; cocacolacompany.com, the cocacolacompany.com, and cocacola.net, .info, .us., .org, .me, and many more.
  • 37.
    3. Support Services •Customer support—during and after purchases— is a critical component in the value proposition. • Customer service representatives should be knowledgeable and concerned about customer experiences. • Sites that care about developing relationships with their customers, such as Amazon.com, place some of their best people in customer support. • Some products need extra customer support • Help customers with installation, maintenance problems, product guarantees, and service warranties, and in general work to increase customer satisfaction with the firm’s products.
  • 38.
    • Some companiescombines online and offline channels to increase support services. • Online chat bots are an important and growing part of customer service. • Live chat online occurs when a user is at a site and types into a box to communicate in real time with a company customer service representative—either during the purchase process or a postpurchase customer service
  • 39.
    4. Labeling • Productlabels identify brands, sponsoring firms, and product ingredients, and often provide instructions for use and promotional materials. • Labels on tangible products create product recognition and influence decision behaviour at the point of purchase. • Labeling has digital equivalents in the online world. For online services, terms of product usage, product features, and other information comprise online labeling at Web sites.
  • 40.
    Example • When usersdownload iTunes software for organizing their iPod music, they can first read the “label” to discover how to install and use the software. • Many companies have extensive legal information about copyright use on their Web pages. • the Federal Trade Commission has a “label” page discussing its privacy policy • Online labeling can serve many of the same purposes on the Web as offline.
  • 41.
    • Another validatinglabel is the TRUSTe privacy shield. If firms agree to certain terms of use regarding. • Privacy of customer information collected at their site, they may register at TRUSTe, download the TRUSTe seal, and affix it to their Web sites as part of a label. • Finally, many sites present social media logos as labels on their pages. The purpose is to allow sharing, commenting, or registering via Facebook and others. • These logos add to the credibility and technology competence of the original company.
  • 43.
    E-Marketing-Enhanced Product Development •The move from atoms to bits adds complexity to online product offers. Developers must now combine digital text, graphics, video, and audio and use new internet delivery systems. • They must integrate front-end customer service operations with back-end data collection and fulfillment methods to deliver product. These requirements create steep learning curves for traditional companies as they work these factors into the product value proposition
  • 44.
    Customer Codesign viaCrowdsourcing
  • 45.
    Offline market • Thepower shift to buyers, when combined with the internet’s global reach, allows for many unusual business partnerships and for both business and consumer collaboration. • Partners form synergistic clusters to help design customer products that deliver value Example • Dell Computer contractually gave one supplier 25 percent of its volume requirement for computer monitors, the supplier assigned engineers to work with Dell’s product development team Laptops, Smartphones.
  • 46.
    Online Market • Internettechnology allows this type of collaboration to occur electronically among consumers across international borders as well. • For example, software developers commonly seek customer input as they develop the product. • You may have seen Web sites, mobile apps, and others listed as “Beta version.” This means that the product is in a development stage and users will try it and give feedback to the company about possible changes to improve usability. • This process repeats as the company improves the product based on this feedback and releases newer beta versions for customer testing
  • 47.
    Examples • Internet browsers, •CRM software • Android apps • iOS apps and many others use this basic process • LEGO Group, a toy maker • software for creating virtual LEGO designs Consumers then upload their fancy palaces and robots to the LEGO gallery online, where
  • 48.
  • 49.
    • Many organizationsengage customers by inviting them to create advertisements and Web site content on their sites or social media pages. • Blogs are one technology that increased this co- development of Web content. Bloggers invite comments to their posts, thus increasing the content value for readers. • Good marketers look everywhere for customer feedback to improve products, even setting up blogs for the sole purpose of gathering customer ideas and input
  • 50.
    Internet Properties SpawnOther Opportunities • The internet’s unique properties generated unusual new products and companies. • Example Location-based services (LBS) • Global positioning devices (GPS) in smartphones and other mobile online devices track user locations and send to friends via “check-ins” while at restaurants, retailers, and many other locations
  • 51.
    • Online auctionsare a perfect example. • Not long after eBay came online, Amazon.com and others began offering auctions. • B2B, B2C, C2C and other markets. • Taking short product life cycles to an extreme. • Wallet services are best example, Paytm, mobikwik, freecharge • Payment banks (Airtel)
  • 52.
    New-Product Strategies for E-Marketing •Many new products, such as YouTube, Yahoo!, and Twitter.com, were introduced by “one-pony” firms, built around the company’s first successful product. • Other organizations, such as Microsoft, added internet products to an already successful product mix. Example Windows OS, Internet explorer, Microsoft Edge, Office etc.
  • 53.
    Product Mix Strategies •Marketers integrate hot product ideas for the internet into current product mixes • Companies can choose among SIX CATEGORIES OF NEW-PRODUCT STRATEGIES 1. DISCONTINUOUS INNOVATIONS 2. NEW-PRODUCT LINES 3. ADDITIONS TO EXISTING PRODUCT LINES 4. IMPROVEMENTS OR REVISIONS OF EXISTING PRODUCTS 5. REPOSITIONED PRODUCTS 6. ME-TOO LOWER-COST PRODUCTS
  • 54.
    1. DISCONTINUOUS INNOVATIONS •New-to-the-world products never seen before. • Computers, smartphones were discontinuous innovations when introduced. • Digital cameras etc Especially on Internet • Web page design software • Shopping Agents • Search Engine etc
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    • Social networkingis another discontinuous innovation—the idea that each internet user has a rich array of contacts for fun and profit when tapped.
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    Smartphone Applications 1.Android Playstore 2.iOS store 3.Windows store 4.Amazon appstore 5.Blackberry World
  • 60.
    Number of appsavailable in leading app stores as of March 2017
  • 61.
    • most populartechnology blog online Engadget (engadget.com). • Mashable.com
  • 63.
    DISRUPTIVE INNOVATION is aspecial category of discontinuous innovation that changes the existing market in a drastic way. 1. Digital Music Downloads disrupted CD market 2. Desktop publishing disrupted newspaper and magazine market 3. GPS devices disrupted physical paper map market 4. Facebook and twitter disrupted the market how people communicate and share ideas
  • 64.
    2. New-Product Lines •These are introduced when companies take an existing brand name and create new products in a completely different category. • For example, Microsoft created a new line when it introduced its Internet Explorer Web browser. • Because the Netscape browser was already available at that time, Microsoft’s entry was not a discontinuous innovation. • And Netscape is history now.
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    3. Additions toExisting Product Lines • This occurs when organizations add a new flavor, size, or other variation to a current product line. • Google has many different product lines (search, advertising, applications, enterprise, and more)—all leveraging the great brand name and helping to increase brand equity.
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    4. Improvements orRevisions of Existing Products• These products are introduced as “new and improved” and, thus, replace the old product. • On the internet, firms are continually improving their brands to add value and remain competitive
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    5.Repositioned Products • Theseare current products that are either targeted to different markets or promoted for new uses. • Yahoo! began as a search directory on the Web and then repositioned itself as a portal (an internet entry point with many services), and then as a Life Engine. • By doing so, Yahoo! first positioned itself against the early leader, America Online, and is now positioning away from prime competitor, Google. • MSNBC repositioned its news organization for younger viewers
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    6. Me-Too Lower-CostProducts • These are introduced to compete with existing brands by offering a price advantage. • The internet spawned a multitude of free products with the idea of building market share so the firm would have a customer base for marketing its other products
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  • 94.
    Barnes & NobleVs. Amazon