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[F] Product

參考資料： Judy Strauss, Adel I. El-Ansary, and Raymond

Frost, E-Marketing, Prentice Hall, 2006. Chap 10: Product.

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Environment, Strategy, and Performance (ESP Model)

P

Legal - Ethical Technology Competition Other factors

E-Business Strategy/

Model

Performance Metrics

SWOT

E-MarketingStrategy

Implementation Marketing Mix

Markets

Internet E

S

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Link E-Business with E-Marketing Strategy

E-marketing strategic planning occurs in two highly interrelated tiers:

Segmentation

Targeting

Value

Positioning

Differentiation

CommunicationDistribution

OfferE-Marketing Strategy

Tier 1 tasks

Tier 2 tasks

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Overview

The Classmates Story Product Creating Customer Value Online

Attributes Branding Support Services Labeling

E-Marketing Enhanced Product Development New Product Strategies for E-Marketing

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1. The Classmates Story http://www.classmates.com

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The Classmates Story A new and purely online product

a place for people to look up former high school and college classmates.

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 ).

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 Business model: A subscription ( 訂閱費 ) model

Selling content not advertising: Allow people to register for free and read profiles, but they must pay to communicate with others.

Subscribers: Have full database access. Can receive an e-mail notification when someone from their school

registers.

Has Outgrown its brand name Moving beyond schools: former workplace or military. Apply Existing or Create New Brand Names?

But discard the existing brand makes no sense.

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2. Product 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. 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 ProductsContent Provider

Internet Infrastructure

End User

Hardware Server, switch Router, fiber-optic backbone

Modem, PC, Web TV, PDA

Software Web authoring, encryption, audio/video digitizing

Protocols, TCP/IP, DNS

Web browser, e-mail client, decryption, audio/video player

Services E-commerce consulting, Web development, Web design, application service providers

ISP, backbone service provider

Web-based virus scan, auto updates, calendaring, e-mail

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3. Creating Customer Value Online

Customer value = Benefits – Costs Marketers must make general product

decisions that comprise its bundle of benefits to meet customer needs: Attributes Branding Support Services Labeling

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3.1 Attributes Product attributes include:

Overall quality: “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: 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 The Internet increases customer benefits in many

ways: The move from atoms to bits:

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 A brand ( 品牌 ):

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.

Important online, because of concern over security and privacy issues

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Branding Decisions Companies creating new products for online

sale face several branding decisions: 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

Using existing brand names on the Web: Makes sense when the brand is well-known

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: 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

Creating new brands a good name is very important.

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: Short, Memorable, ( 好記 ) Easy to spell, Capable of translating well into other languages.

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(2) Cobranding When two different companies put their

brand names on the same product. 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. Even the Web site address displays the cobrand:

sportsillustrated.cnn.com.

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(3) Internet Domain Names A URL (Uniform Resource Locator)

= 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. 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

Customer support (during and after purchases): 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 Product labels:

Identify brand names, sponsoring firms, and product ingredients ( 原料 ), Provide instructions for use and promotional materials,

Online “labels” 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

Customer Codesign 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. 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

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

(1) Discontinuous innovations: new-to-the-world products. 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. 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

(3) New variation (flavor, size…) of a current product line. E.g.: The New York Times line includes the daily

paper, weekly book review, and others.

(4) Improvements or revisions of existing products E.g.: Web-based e-mail systems improved on client-

based 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

(5) Repositioned products: are current products that are either targeted to different markets or promoted for new uses. 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. 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.