Transcript E-Marketing

[F] Product
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參考資料：
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Judy Strauss, Adel I. El-Ansary, and Raymond
Frost, E-Marketing, Prentice Hall, 2006.
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Chap 10: Product.
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Environment, Strategy, and
Performance (ESP Model)
E
Legal - Ethical
Technology
Competition
Other factors
Internet
Markets
SWOT
S
P
E-Business
Strategy/
Model
E-Marketing
Strategy
Implementation
Marketing Mix
Performance Metrics
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Link E-Business with
E-Marketing Strategy
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E-marketing strategic planning occurs in two
highly interrelated tiers:
Tier 1
tasks
Tier 2
tasks
Targeting
Differentiation
Segmentation
Positioning
E-Marketing Strategy
Offer
Value
Communication
Distribution
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Overview
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The Classmates Story
Product
Creating Customer Value Online
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Attributes
Branding
Support Services
Labeling
E-Marketing Enhanced Product Development
New Product Strategies for E-Marketing
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1. The Classmates Story
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http://www.classmates.com
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The Classmates Story
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A new and purely online product
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a place for people to look up former high school and
college classmates.
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Began in 1995
It has been profitable since 2001: $35.6 million.
It capitalized on (把握住機會) a consumer need in
30-plus age bracket (30歲以上的一群人).
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Reconnect (聯繫) with people from the past and with
individual’s needs to learn. E.g. a former girlfriend has a
BMW or gained weight (體重增加).
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The Classmates Story
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Business model: A subscription (訂閱費) model
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Selling content not advertising: Allow people to register for
free and read profiles, but they must pay to communicate
with others.
Subscribers:
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Have full database access.
Can receive an e-mail notification when someone from their school
registers.
Has Outgrown its brand name
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Moving beyond schools: former workplace or military.
Apply Existing or Create New Brand Names?
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But discard the existing brand makes no sense.
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2. Product
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A bundle of benefits that satisfies the needs of
organizations/consumers and for which they are
willing to exchange money or other items of value.
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Items such as tangible goods, services, ideas, people,
and places.
Some new products are unique to the Internet
(e.g. search engines).
Other products use the Internet as a new distribution
channel, often adding unique technology-enabled
services (e.g. books).
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A Taxonomy for Internet Products
Content
Provider
Internet
Infrastructure
Router, fiber-optic
backbone
End
User
Hardware
Server, switch
Software
Web authoring,
Protocols, TCP/IP,
encryption,
DNS
audio/video digitizing
Web browser, e-mail
client, decryption,
audio/video player
Services
E-commerce
consulting, Web
development, Web
design, application
service providers
Web-based virus
scan, auto updates,
calendaring, e-mail
ISP, backbone service
provider
Modem, PC, Web
TV, PDA
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3. Creating Customer Value Online
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Customer value = Benefits – Costs
Marketers must make general product
decisions that comprise its bundle of
benefits to meet customer needs:
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Attributes
Branding
Support Services
Labeling
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3.1 Attributes
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Product attributes include:
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Overall quality:
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“you get what you pay for” = higher and consistent
(一致) quality generally means higher prices, thus
maintaining the value proposition (價值提議).
Specific features:
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Include such elements as color, taste, style, size, and
speed of service.
E.g.: Yahoo! provides a list of Web site categories
(attribute), which helps users find things quickly
online (benefit).
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Attributes
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The Internet increases customer benefits in many
ways:
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The move from atoms to bits:
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media, music, software, and other digital products are
presented on the Web.
User personalization: Through Web site registration and
other techniques, Web sites can:
 Greet (歡迎) users by name,
 Suggest product offerings of interest based on
previous purchases,
 E.g.: Amazon.com
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3.2 Branding
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A brand (品牌):
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includes a name (e.g. McDonald’s), a symbol
(golden arches), or other identifying information.
A promise to customers,
A brand name and its image are often part of the
benefits a user desires,
A way to establish trust for the customer.
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Important online, because of concern over security
and privacy issues
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Branding Decisions
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Companies creating new products for online
sale face several branding decisions:
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Whether to apply existing brand names or
create new brand names for new products,
Whether to lend (借出) their brand name as a
cobrand (共用品牌) with other firms,
What domain name to use for the Web site.
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(1) Apply Existing or
Create New Brand Names
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Using existing brand names on the Web:
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Makes sense when the brand is well-known
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E.g.: Amazon added music CDs, videos, software…
When products with offline sales introduce online extensions
choosing to use the same brand name (e.g., The New York Times).
Some firms may not want to use the same brand
name online and offline:
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If the new product or channel is risky.
A powerful Internet success might inadvertently (不經意)
reposition the offline brand.
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Apply Existing or
Create New Brand Names
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Creating new brands
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a good name is very important.
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Suggest something about the product (e.g.,
www.Classmates.com),
Differentiate the product from competitors
legal protection. (法律保護)
On the Internet, a brand name should be:
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Short,
Memorable, (好記)
Easy to spell,
Capable of translating well into other languages.
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(2) Cobranding
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When two different companies put their
brand names on the same product.
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Common on the Internet and is a good way for
firms to build synergy through expertise and
brand recognition.
E.g.: Yahoo! 奇摩
E.g.: Sports Illustrated now co-brands with
CNN as CNNSI.
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Even the Web site address displays the cobrand:
sportsillustrated.cnn.com.
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(3) Internet Domain Names
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A URL (Uniform Resource Locator)
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= Web site address = IP address
Similar to telephone area codes.
Many firms use the trademark or brand name to
help consumers quickly find their site.
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E.g.: www.coca-cola.com.
Many creative Netizens (網民) register lots of
popular names and offer them for sale:
 E.g.: GreatDomains.com allows users to buy
and sell popular domain names.
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Example: GreatDomains.com
(http://premium.greatdomains.com/)
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3.3 Support Services
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Customer support (during and after
purchases):
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Is critical for some technical products for
installation, maintenance problems, product
guarantees, etc. to increase customer
satisfaction.
CompUSA combines online and offline
channels to increase customer support.
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3.4 Labeling
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Product labels:
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Identify brand names, sponsoring firms, and
product ingredients (原料), Provide instructions
for use and promotional materials,
Online “labels”
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provide information about installing and using
software.
also provide extensive legal information about the
software product.
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4. E-Marketing Enhanced
Product Development
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Customer Codesign
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The power shift to buyers.
Customer interaction in the early and late stages of
product development can increase product success.
Electronic Input: Good marketers look everywhere
for customer feedback to improve products.
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Invite customer product ratings.
The proliferation (擴散) of e-mail “word of mouth”.
Scan Internet: look for company and product discussion.
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5. New Product Strategies
for E-Marketing
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Companies can choose among six
categories of new-product strategies
based on marketing objectives, risk
tolerance, resource availability, etc.
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New Product Strategies
for E-Marketing
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(1) Discontinuous innovations: new-to-the-world
products.
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E.g.: the first Web authoring software, cell phone/PDA
combination, shopping agent…
(2) New product lines: new products in a different
category for an existing brand name.
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E.g.: Microsoft created IE as new line. (Netscape was
already available, so it wasn’t a discontinuous innovation.)
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New-Product Strategies
for E-Marketing
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(3) New variation (flavor, size…) of a current
product line.
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E.g.: The New York Times line includes the daily paper,
weekly book review, and others.
(4) Improvements or revisions of existing products
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E.g.: Web-based e-mail systems improved on clientbased e-mail systems such as Eudora or Outlook
because users could check and send e-mail from any
Web connected computer.
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New-Product Strategies
for E-Marketing
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(5) Repositioned products: are current products that
are either targeted to different markets or promoted for
new uses.
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E.g.: Yahoo! began as a search directory on the Web and
then repositioned itself as a portal (an Internet entry point
with many services).
(6) Me-too lower-cost products: To compete with
existing brands by offering a price advantage.
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E.g.: When America Online and other ISPs were charging
per hour rates for Internet access, some providers introduced
unlimited use at flat rate pricing for $19.95 per month.
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