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E-Marketing, 3rd editionJudy Strauss, Adel I. El-Ansary,and Raymond Frost
Chapter 10: Product
Prentice Hall 2003
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OverviewMany Products Capitalize on InternetPropertiesCreating Customer Value Online
Online BenefitsAttributesBrandingSupport ServicesLabeling
E-Marketing Enhanced Product Development
Customer CodesignElectronic InputWeb Content DevelopmentInternet Properties Spur OtherOpportunitiesNew-Product Strategies for E-Marketing
A Taxonomy for Internet Products
New-Product TrendsValue Chain AutomationPromotion
Product ConfigurationBrokeragesCustomer ServiceDistributionRelationship MarketingOutsourcing
Information SharingCentralizing Information
AccessMultimedia
Assistive TechnologiesThree Types of Convergence
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Many Products Capitalize
on Internet Properties
Aproduct:
Abundle of benefits that satisfies the needs oforganizations/consumers and for which they are willingto exchange money or other items of value.
Items such as tangible goods, services, ideas, people,and places.
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Many Products Capitalize
on Internet Properties May be classified by the purpose for which they are
purchased:
Consumer products = purchased by an individual forpersonal consumption.
Businesses sell products to consumers in the business-to-consumer (B2C) market.
Consumers sell products to one another in the
consumer-to-consumer (C2C) market. Industrial products = used in the operation of an
organization, as components for manufacture into finalproduct, or for resale (B2B market).
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Many Products Capitalize
on Internet Properties Some new products are unique to the Internet (search engines).
Other products use the Internet as a new distribution channel +addunique technology-enabled services (books).
With the Internets properties of market deconstruction, customercontrol, and other e-marketing trends: Many challenges, A plethora of new opportunities.
The success ofClassmates.com demonstrates how a new and purelyonline product can use the Internets properties to build a successfulbrand.
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Many Products Capitalize
on Internet Properties To create new products:
Research to determine what is important to customers, Design strategies to deliver more value than do competitors.
In line with the Sources, Databases, and Strategy model, tier twostrategies involve the marketing mix 4Ps and customer relationshipmanagement (CRM).
The process of designing these strategies is closely tied to the tacticsused to implement them.
The marketing mix (product, price, distribution, marketingcommunication) + customer relationship management (CRM) worktogether to produce relational and transactional outcomes withconsumers.
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Integrated MarketingCommunication (IMC)
Product:The Offer
Price:
The Value
Distribution Channels
RelationalOutcomes
Transactional
Outcomes
ConsumersCRM
Marketing Mix and CRM Strategies and Tactics for Relational and Transactional Outcomes
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OverviewMany Products Capitalize on Internet PropertiesCreating Customer Value OnlineOnline Benefits
AttributesBrandingSupport ServicesLabeling
E-Marketing Enhanced Product DevelopmentCustomer Codesign
Electronic InputWeb Content DevelopmentInternet Properties Spur OtherOpportunitiesNew-Product Strategies for E-Marketing
A Taxonomy for Internet Products
New-Product TrendsValue Chain AutomationPromotion
Product ConfigurationBrokeragesCustomer ServiceDistributionRelationship MarketingOutsourcing
Information SharingCentralizing Information
AccessMultimedia
Assistive TechnologiesThree Types of Convergence
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Creating Customer Value Online
Never has competition for online customer attention anddollars been more fierce.
To succeed, firms must employ that result in
Customer value = Benefits Costs.
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OverviewMany Products Capitalize on Internet PropertiesCreating Customer Value OnlineOnline Benefits
AttributesBrandingSupport ServicesLabeling
E-Marketing Enhanced Product DevelopmentCustomer Codesign
Electronic InputWeb Content DevelopmentInternet Properties Spur OtherOpportunitiesNew-Product Strategies for E-Marketing
A Taxonomy for Internet Products
New-Product TrendsValue Chain AutomationPromotion
Product ConfigurationBrokeragesCustomer ServiceDistributionRelationship MarketingOutsourcing
Information SharingCentralizing Information
AccessMultimedia
Assistive TechnologiesThree Types of Convergence
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Online Benefits The Internet technology brings a new set of desired benefits:
Effective Web navigation, Quick download speed, Clear site organization, Attractive and useful site design, Secure transactions & privacy, Free information or services, User-friendly Web browsing and e-mail reading.
BUT as Internet technology evolves, user needs change, and theopportunities expand.
Marketers must make five general product decisions that comprise itsbundle of benefits to meet customer needs: attributes, branding,support services, labeling, and packaging.
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OverviewMany Products Capitalize on Internet PropertiesCreating Customer Value OnlineOnline Benefits
AttributesBrandingSupport ServicesLabeling
E-Marketing Enhanced Product DevelopmentCustomer Codesign
Electronic InputWeb Content DevelopmentInternet Properties Spur OtherOpportunitiesNew-Product Strategies for E-Marketing
A Taxonomy for Internet Products
New-Product TrendsValue Chain AutomationPromotion
Product ConfigurationBrokeragesCustomer ServiceDistributionRelationship MarketingOutsourcing
Information SharingCentralizing Information
AccessMultimedia
Assistive TechnologiesThree Types of Convergence
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Attributes Product attributes include:
Overall quality: you get what you pay for = higher andconsistent quality generally means higher prices,
Specific features: Include such elements as color, taste,style, size, and speed of service.
Benefits are the same features from a user perspective (i.e.,what will the attribute do to solve problems or meet needs andwants?).
For example, Yahoo! provides a list of Web site categories(attribute), which helps users find things quickly online(benefit).
Product benefits are key components in the value proposition.
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Attributes The Internet increases customer benefits in many ways
that have revolutionized marketing practice: The move from atoms to bits: media, music, software, and other
digital products are presented on the Web. Product customization:
Tangible products such as laptop computers can be sold alone or withmany additional hardware and software items or services to provideadditional benefits at a higher price.
Intangible products, online research firms can offer many different
business services in a variety of combinations.
Information products can be reconfigured andpersonalized very easily, quickly, and cheaply, as
compared to manufactured products.
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Attributes The Internet offers users the unique opportunity to
customize products automatically without leaving theirkeyboards.
User personalization is another form of customization:
Through Web site registration and other techniques, Websites can:
Greet users by name, Suggest product offerings of interest based on previous
purchases,
Amazon.com
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OverviewMany Products Capitalize on Internet PropertiesCreating Customer Value OnlineOnline Benefits
AttributesBrandingSupport ServicesLabeling
E-Marketing Enhanced Product DevelopmentCustomer Codesign
Electronic InputWeb Content DevelopmentInternet Properties Spur OtherOpportunitiesNew-Product Strategies for E-Marketing
A Taxonomy for Internet Products
New-Product TrendsValue Chain AutomationPromotion
Product ConfigurationBrokeragesCustomer ServiceDistributionRelationship MarketingOutsourcing
Information SharingCentralizing Information
AccessMultimedia
Assistive TechnologiesThree Types of Convergence
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Branding
Abrandincludes a name (McDonalds), a symbol (goldenarches), or other identifying information.
When a firm registers that information with the U.S.Patent Office, it becomes a trademark and is legallyprotected from imitation.
According to the U.S. government, a trademark is either aword, phrase, symbol or design, or combination of words,phrases, symbols or designs, that identifies anddistinguishes the source of the goods or services of oneparty from those of others.
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Branding A brand is:
A promise to customers, A brand name + its image = the benefits a user
desires, A way to establish trust for the customer.
Important online, because of concern over security andprivacy issues,
Trustworthy brand names add to customer-perceivedbenefits = higher prices,
The value proposition.
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Branding Customers and prospects develop brand images based on
every brand contact:
One-way media such as advertising and packaging, Two-way communication such as conversations with
the firms customer service or sales people on thephone, at trade shows, on Web sites, or in company-initiated e-mail.
When using the Internet, a firm must be sure that itsonline messages and employee e-mails convey a positivebrand image that is consistent with messages from allother contact points.
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Branding
Companies creating new products for online sale faceseveral branding decisions:
Whether to apply existing brand names or create newbrand names for new products,
Whether to lend their brand name as a cobrand with
other firms,
What domain name to use for the Web site.
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Branding 7 components for building a great global brand:
1. Research your corporate constituencies.
Information is critical for global brand building.2. Understand your business. Set guidelines based on
global objectives.3. Advance the vision. Decide on the desired
reputation, create a strategy to support it, and develop
a strategic positioning document.4. Release the power of communications. All
company communication should work together topromote the brand.
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Branding 7 components for building a great global brand:
5. Set up your communications infrastructure.
Build a communication council with the firmsadvertising, public relations, investor relations, andhuman resource specialists, both inside and outsidethe firm.
6. Include your employees in the message mix.
This is especially important in a time of PR crisis.7. Measure performance. Track progress toward
goals and determine communication effectiveness.
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Using Existing Brand Names
On the Web An existing brand name can be used for any new product:
Makes sense when the brand is well-known + has strong brand equity(value).
For example, Amazon added music CDs, videos, software, electronics, and
more to its product mix. When products with offline sales introduce onlineextensions choosing to use the same brand name (e.g., The New YorkTimes).
Some firms may not want to use the same brand name online andoffline, for several reasons: If the new product or channel is risky, the firm does not want to
jeopardize the brands good name by associating with a product failure. A powerful Internet success might inadvertently reposition the offline
brand. 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 offlinebrand.
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Creating New Brands
for Internet Marketing If an organization wants to create a new Internet brand, a
good name is very important. Good brand names should:
Suggest something about the product (e.g.,www.Classmates.com), Differentiate the product from competitors (e.g., www.gurl.com), Be capable of legal protection.
On the Internet, a brand name should be: Short, Memorable, Easy to spell, Capable of translating well into other languages.
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Cobranding Cobranding:
When two different companies put their brand nameson the same product.
Common on the Internet and is a good way for firms tobuild synergy through expertise and brand recognition.
For example: Sports Illustratednow co-brands with CNN as CNNSI.
Even the Web site address displays the cobrand:sportsillustrated.cnn.com.
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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 brand name in the Web address
helps consumers quickly find the site. For example, www.coca-cola.com.
Anatomy of a URL:
AURL (Uniform Resource Locator) = Web site address = IP
address (Internet Protocol) = domain name. Categorization scheme, similar to telephone area codes, that helps
computer users find other computers on the Internet network. Are numbers, but because users can more easily remember
names, a domain name server translates back and forth.
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Internet Domain Names A domain name contains several levels:
http:// = hypertext protocol = The browser should expect data using thehypertext protocolmeaning documents that are linked together using
hyperlinks. www = world wide web = Not necessary and most commercial sites register
their name both with and without it. dell = second level domain = The name of the company or the brand name. com = top level domain = Firms must first decide in which top level domain
to register. Most businesses in the U.S. want .com,
The Internet Corporation for Assigned Names and Numbers (ICANN):
A non-profit corporation, A committee of experts to make decisions about protocol and domain name
assignment, registration,
Approves all new top level names such as the latest: biz, .info, .pro, .name,.coop, .aero, and .museum.
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Domain Designation Top Level Domain Name Number of Hosts(millions)
net Networks 47.8
com Commercial 44.5
edu Educational 7.8
jp Japan 7.1
ca Canada 2.9
de Germany 2.7
uk United Kingdom 2.5
au Australia 2.3it Italy 2.3
us United States 2.1
Largest Top Level Domain Names in January 2002 and Number of Hosts
Source: Data from Network Wizards (www.isc.org)
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Registering a New Domain Name VeriSign provides domain registering services for a mere
$70/2 years/name.
Problems:
More than 97% of words in the dictionary alreadyregistered as domain names,
The online name a firm desires may not be available.
A dictionary name is not necessarily the best optionbecause it already has a meaning attached to it = difficultto build a competitive advantage.
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Have an Extra $1.5 Million to Spare? Buy www.ad.com.
Source:GreatDomains.com
http://www.ad.com/http://www.greatdomains.com/http://www.greatdomains.com/http://www.greatdomains.com/http://www.greatdomains.com/http://www.ad.com/http://www.ad.com/http://www.ad.com/http://www.ad.com/http://www.ad.com/7/30/2019 Chapter 10 f
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OverviewMany Products Capitalize on Internet PropertiesCreating Customer Value OnlineOnline Benefits
AttributesBrandingSupport ServicesLabeling
E-Marketing Enhanced Product DevelopmentCustomer Codesign
Electronic InputWeb Content DevelopmentInternet Properties Spur OtherOpportunitiesNew-Product Strategies for E-Marketing
A Taxonomy for Internet Products
New-Product TrendsValue Chain AutomationPromotion
Product ConfigurationBrokeragesCustomer ServiceDistributionRelationship MarketingOutsourcing
Information SharingCentralizing InformationAccessMultimedia
Assistive TechnologiesThree Types of Convergence
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Support Services Customer support (during and after purchases):
Is a critical component in the value proposition, Need knowledgeable customer service representatives, Is critical for some technical products for installation,
maintenance problems, product guarantees, andservice warranties.
Customer service: Works to increase customer satisfaction with the firms
products, Is a product benefit = an important part of customer
relationship management.
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OverviewMany Products Capitalize on Internet PropertiesCreating Customer Value OnlineOnline Benefits
AttributesBrandingSupport ServicesLabeling
E-Marketing Enhanced Product DevelopmentCustomer Codesign
Electronic InputWeb Content DevelopmentInternet Properties Spur OtherOpportunitiesNew-Product Strategies for E-Marketing
A Taxonomy for Internet Products
New-Product TrendsValue Chain AutomationPromotion
Product ConfigurationBrokeragesCustomer ServiceDistributionRelationship MarketingOutsourcing
Information SharingCentralizing InformationAccessMultimedia
Assistive TechnologiesThree Types of Convergence
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Labeling Labeling at Web sites, customers can read:
How to install and use a software downloaded from theInternet,
Extensive legal information about copyright use on theirWeb pages,
Online labeling can serve many of the same purposes on theWeb as offline
Many brick-and-mortar businesses display the BetterBusiness Bureau logo on their doors to give the customer a
sense of confidence and trust. The TRUSTe privacy shield: If firms agree to certain terms of
use regarding privacy of customer information collected attheir site, they affix the TRUSTe seal to their Web sites aspart of a label.
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Microsoft Terms of Use Label
Source:www.microsoft.com. Copyright 2000 Microsoft Corporation, One Microsoft Way, Redmond,Washington 98052-6399 U.S.A. All rights reserved.
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OverviewMany Products Capitalize on Internet PropertiesCreating Customer Value OnlineOnline Benefits
AttributesBrandingSupport ServicesLabeling
E-Marketing Enhanced Product DevelopmentCustomer Codesign
Electronic InputWeb Content DevelopmentInternet Properties Spur OtherOpportunitiesNew-Product Strategies for E-Marketing
A Taxonomy for Internet Products
New-Product TrendsValue Chain AutomationPromotion
Product ConfigurationBrokeragesCustomer ServiceDistributionRelationship MarketingOutsourcing
Information SharingCentralizing InformationAccessMultimedia
Assistive TechnologiesThree Types of Convergence
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E-Marketing Enhanced
Product Development The move from atoms to bits adds complexity to online
product offers.
Developers must: Combine digital text, graphics, video, and audio, and use new
Internet delivery systems.
Must integrate front-end customer service operations with back-end data collection + fulfillment methods to deliver product.
This creates steep learning curves for traditional firms.
E-marketers need to consider several factors that affect productdevelopment and product mix strategies with new technologies.
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OverviewMany Products Capitalize on Internet PropertiesCreating Customer Value OnlineOnline Benefits
AttributesBrandingSupport ServicesLabeling
E-Marketing Enhanced Product DevelopmentCustomer Codesign
Electronic InputWeb Content DevelopmentInternet Properties Spur OtherOpportunitiesNew-Product Strategies for E-Marketing
A Taxonomy for Internet Products
New-Product TrendsValue Chain AutomationPromotion
Product ConfigurationBrokeragesCustomer ServiceDistributionRelationship MarketingOutsourcing
Information SharingCentralizing InformationAccessMultimedia
Assistive TechnologiesThree Types of Convergence
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Customer Codesign The power shift to buyers allows for many unusual business
partnerships and for both business and consumer collaboration. Partners are forming synergistic clusters to help design customer products
that deliver value.
Internet technology allows this type of collaboration to occurelectronically across international borders as well.
Customer interaction in the early and late stages of productdevelopment can actually increase product success.
This is especially true when product codesign occurs with what is calledthe lead user of a product. This is a key person who uses the product and often innovates himself to
solve product use problems as they occur.
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OverviewMany Products Capitalize on Internet PropertiesCreating Customer Value OnlineOnline Benefits
AttributesBrandingSupport ServicesLabeling
E-Marketing Enhanced Product DevelopmentCustomer Codesign
Electronic InputWeb Content DevelopmentInternet Properties Spur OtherOpportunitiesNew-Product Strategies for E-Marketing
A Taxonomy for Internet Products
New-Product TrendsValue Chain AutomationPromotion
Product ConfigurationBrokeragesCustomer ServiceDistributionRelationship MarketingOutsourcing
Information SharingCentralizing InformationAccessMultimedia
Assistive TechnologiesThree Types of Convergence
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Electronic Input Good marketers look everywhere for customer feedback to improve products.
With the increase of Web sites inviting customer product ratings, theproliferation of e-mail word of mouse, and the speed and reach of the Net,customers are quick to spread the word about product strengths andweaknesses.
Savvy firms monitor customer input electronically and refine products to meetcustomers needs.
Companies hire electronic clipping servicesfirms to scan the Internet looking
for company and product discussion = the electronic version of traditionalclipping services that read print media and clip out articles mentioning thefirm and its brands.
The electronic input process: Is similar to the use of marketing research to support product development; The scale is much larger because many customers worldwide can be involved and
provide quick feedback.
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OverviewMany Products Capitalize on Internet PropertiesCreating Customer Value OnlineOnline Benefits
AttributesBrandingSupport ServicesLabeling
E-Marketing Enhanced Product DevelopmentCustomer Codesign
Electronic InputWeb Content DevelopmentInternet Properties Spur OtherOpportunitiesNew-Product Strategies for E-Marketing
A Taxonomy for Internet Products
New-Product TrendsValue Chain AutomationPromotion
Product ConfigurationBrokeragesCustomer ServiceDistributionRelationship MarketingOutsourcing
Information SharingCentralizing InformationAccessMultimedia
Assistive TechnologiesThree Types of Convergence
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Web Content Development On the Web, content is king. Customers visit Web sites for information, entertainment, and to buy
products. Content attracts users and keeps them returning.
5 tips for screaming content: Stay fresh. Update the site every day and at least once on the weekend. That
takes a huge commitment! Be relevant and unique. Deliver highly focused content that is differentiated
from competitive site content. Make it easy to find. Users want to find information or products immediately.
Also, dont include hyperlinks to other sites for content because users dont oftenreturn after they leave. Serve a smorgasbord of content. Integrate current news and facts with longer
features and commentary. Include interactive material relevant to the site, such asquizzes, calculators, searches, and so forth. Vary the format to include multimedia.
Deliver content everywhere. This includes Web sites, wireless devices, andspecial networks.
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Web Content Development A new breed of syndicated content providers has emerged to serve Web
developers: Is parallel to the Associated Press that feeds news to local and national newspapers
and magazines. Includes stock quotes, breaking news, sports updates, weather information, and
morein all formats from text to video.
An interesting trend involves users who want text-based content only: A small but growing group of Web users does not want the distraction of video,
sound, animation, and other non-text items, They favor simple text information, They block advertising content with special software and know exactly what they
want online, They do not like HTML e-mail.
Important because mobile handheld devices use mostly text content. Web content providers might consider how to pare down the features in special
areas for these users + charge a subscription fee for the content.
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OverviewMany Products Capitalize on Internet PropertiesCreating Customer Value OnlineOnline Benefits
AttributesBrandingSupport ServicesLabeling
E-Marketing Enhanced Product DevelopmentCustomer Codesign
Electronic InputWeb Content DevelopmentInternet Properties Spur OtherOpportunitiesNew-Product Strategies for E-Marketing
A Taxonomy for Internet Products
New-Product TrendsValue Chain AutomationPromotion
Product ConfigurationBrokeragesCustomer ServiceDistributionRelationship MarketingOutsourcing
Information SharingCentralizing InformationAccessMultimedia
Assistive TechnologiesThree Types of Convergence
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Internet Properties Spur
Other Opportunities Market deconstruction created a disaggregation and reaggregation of product
and service components to form unusual new products and firms: These firms provide bundles of benefits difficult to achieve before the Internet. The AutoMall Online.
The Internet is a great information equalizer: Fierce competition + lots of product imitation + short product life cycles. In this environment, product differentiation is the key to keep from becoming a
price-driven commodity industry.
Online auctions: Not long after eBay came online, Amazon.com and others beganoffering auctions.
Short product life cycle: when Frank Sinatra died, BMGs five-person new-productdevelopment team created a lifetime tribute and a series of product offerings forthe Web site in six short hours.
Firms must respond quickly to new technology or lose. Innovation online is still rewarded.
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OverviewMany Products Capitalize on Internet PropertiesCreating Customer Value OnlineOnline Benefits
AttributesBrandingSupport ServicesLabeling
E-Marketing Enhanced Product DevelopmentCustomer Codesign
Electronic InputWeb Content DevelopmentInternet Properties Spur OtherOpportunitiesNew-Product Strategies for E-Marketing
A Taxonomy for Internet Products
New-Product TrendsValue Chain AutomationPromotion
Product ConfigurationBrokeragesCustomer ServiceDistributionRelationship MarketingOutsourcing
Information SharingCentralizing InformationAccessMultimedia
Assistive TechnologiesThree Types of Convergence
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New-Product Strategies
for E-Marketing
Many new products were introduced by one-pony firms:
= The firm was built around the first successful
product, Netscape, Yahoo!, and Classmates.
Other firms added Internet products to an already
successful product mix: Microsoft.
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Product Mix Strategies How can marketers integrate hot product ideas into current product
mixes? There are 6 categories of new-product strategies based onmarketing objectives and other factors such as risk appetite,strength of current brand names, resource availability, andcompetitive entries:
1. Discontinuous innovations are new-to-the-world products neverseen before.
On the Internet = the first Web authoring software, cell phone/PDAcombination, shopping
agent, and search engine. There are many discontinuous innovations yet to come on the Internet. This strategy is quite risky, the potential rewards for success are great. E-marketers planning discontinuous innovations must remember that
their customers will have to learn and adopt new behaviorsthingsthey have not done before.
The new behavior must be easy and the perceived benefits worthwhile.
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Product Mix Strategies2. New product lines are introduced when firms take an
existing brand name and create new products in acompletely different category.
Microsoft created a new line when it introduced its Internet ExplorerWeb browser. Because the Netscape browser was already available,Microsofts entry was not a discontinuous innovation.
3. Additions to existing product lines occur whenorganizations add a new flavor, size, or other variationto a current product line.
The New York Times Direct is a slightly different version of the hard-copy edition, adapted for online delivery. It is yet another product inThe New York Times line, which includes the daily paper, weekly book
review, and others.
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Product Mix Strategies4. Improvements or revisions of existing products are introduced as
new and improved and, thus, replace the old product. Web-based e-mail systems improved on client-based e-mail systems
such as Eudora or Outlook because users could check and send e-mailfrom any Web connected computer.
5. Repositioned products are current products that are either targetedto different markets or promoted for new uses.
Yahoo! began as a search directory on the Web and then repositioneditself as a portal (an Internet entry point with many services).
6. Me-too lower-cost products are introduced to compete with existingbrands by offering a price advantage.
When America Online and other ISPs were charging per hour rates forInternet access, several other providers introduced unlimited use at flatrate pricing for $19.95 per month.
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A Word About ROI Need for performance metrics:
As feedback so firms can assess the success of their e-marketing strategiesand tactics.
When introducing new products, online or offline.
(The expected product revenue over time is forecasted) (marketing andother expenses) = an estimated ROI for new products prior to launch.
Payout = the R & D and other initial costs will be recovered at a particulardate based on projected sales.
Break-even date= when the product is projected to start making a profit. How long is acceptable? Internet projects had to break even within three
months or they would not get funded. Of course the exact timing varies byindustry.
ROI and break-even are important metrics for selling new product ideasinternally and for measuring their success in the market.
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OverviewMany Products Capitalize on Internet PropertiesCreating Customer Value OnlineOnline Benefits
AttributesBrandingSupport ServicesLabeling
E-Marketing Enhanced Product DevelopmentCustomer CodesignElectronic InputWeb Content DevelopmentInternet Properties Spur OtherOpportunitiesNew-Product Strategies for E-Marketing
A Taxonomy for Internet Products
New-Product TrendsValue Chain AutomationPromotion
Product ConfigurationBrokeragesCustomer ServiceDistributionRelationship MarketingOutsourcingInformation SharingCentralizing Information
AccessMultimedia
Assistive TechnologiesThree Types of Convergence
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A Taxonomy for Internet Products
Thousands of products based on Internet technologieshave been introduced.
These can be classified according to the customers towhom they appeal:
Each column represents a group of customers,
Each row in the exhibit represents a type of product.
This matrix is helpful because it displays areas of new-product opportunity.
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Content Provider Internet
Infrastructure
End User
Hardware Server farm, high-speed switch
Router, satellite,fiber-optic backbone
Modem, PC, WebTV, PDA, assistive
technologies,
convergence
products
Software Web authoring,encryption,
audio/video
digitizing
Enabling software
Protocols, TCP/IP,DNS
Web browser, e-mail client,
decryption,
audio/video player
software
Services E-commerceconsulting, Web
development, Web
design, application
service providers
ISP, backboneservice provider,
Web hosting
Web-based virusscan, auto updates,
calendaring, e-mail
Product Taxonomy
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Overview
Many Products Capitalize on Internet PropertiesCreating Customer Value OnlineOnline Benefits
AttributesBrandingSupport ServicesLabeling
E-Marketing Enhanced Product DevelopmentCustomer CodesignElectronic InputWeb Content DevelopmentInternet Properties Spur OtherOpportunitiesNew-Product Strategies for E-Marketing
A Taxonomy for Internet Products
New-Product TrendsValue Chain AutomationPromotion
Product ConfigurationBrokeragesCustomer ServiceDistributionRelationship MarketingOutsourcingInformation SharingCentralizing Information
AccessMultimedia
Assistive TechnologiesThree Types of Convergence
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New-Product Trends
Cutting-edge products and the technologies that makethem work create digital value applying the followingconcepts:
Each represents a new brand, A new product line, Adiscontinuous innovation, A technology improvement.
New products (from wireless end user appliances to B2Bsoftware) success depends on how well they delivercustomer value by offering desired benefits or by loweringcosts.
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New-Product Trends
Many new products are unseen by the final consumer: BUT they form the engine that drives electronic commerce,
They are enabling products, Cisco Systems makes the hardware and software that
powers computer networks.
New technologies accelerate product change.
Most important technologies in 2002 = wireless/mobilecomputing, distributed content delivery and local caching,digital imaging, clustering and parallel computing, high scaleinteroperability, and universal network storage.
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New-Product Trends
4 new-product trends in the B2B market, with the potential to improve efficiencyand effectiveness in marketing functions such as sales, distribution, supply chainmanagement, and marketing research:
1. Value chain automation. Software products enable businesses toperform important marketing functions (value chain).
2. Outsourcing. Businesses look for providers of key value chain functions.Application service providers (ASPs) perform marketing functions on behalfof other businesses.
3. Information sharing. Organizations now share internal information withselected value chain partners. OBI and XML, two variations on electronicdata interchange (EDI), support information sharing.
4. Centralizing information access. Corporate portals = a singleintegrated interface to all of a companys data stores = reduce information
search times for their employees = cost savings + effectiveness.
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New-Product Trends
3 new-product trends operate primarily in the B2C market and have thepower to open up new markets:
1. Multimedia. Gains in network performance enables Internet
multimedia (from video on demand to Webisodes).
2. Assistive technologies. Clever developments allow for computeraccess by persons with a wide range of disabilities + use foreveryday applications such as listening to ones e-mail while driving.
3. Convergence of media. Expect the biggest initial improvementsin the corporate market with gains in consumer markets closebehind.
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Overview
Many Products Capitalize on Internet PropertiesCreating Customer Value OnlineOnline Benefits
AttributesBrandingSupport ServicesLabeling
E-Marketing Enhanced Product DevelopmentCustomer CodesignElectronic InputWeb Content DevelopmentInternet Properties Spur OtherOpportunitiesNew-Product Strategies for E-Marketing
A Taxonomy for Internet Products
New-Product TrendsValue Chain AutomationPromotion
Product ConfigurationBrokeragesCustomer ServiceDistributionRelationship MarketingOutsourcingInformation SharingCentralizing Information
AccessMultimedia
Assistive TechnologiesThree Types of Convergence
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Value Chain Automation
Value chain automation: Benefits = improvements in efficiency and effectiveness of
operations among suppliers, manufacturers, and the entiredistribution channel,
Automates existing business processes (order execution), Enables processes not previously feasible (data mining to uncover
consumer behavior patterns), Helps firms solve some of its main difficulties + lower costs =
lower prices for customers.
Enabling products = expensive, BUT properly installed and managed, they can bring
millions of dollars to the bottom line through new marketopportunities or cost savings.
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Value Chain Automation
6 benefits by purchasing off-the-shelf software solutions:
1. Rapid deployment: Installation team + after-sale support services + helps tointegrate existing systems with the new technology provided.
2. Relatively bug-free rollout of systems: Service quality of the businessimmediately improved.
3. Integrated solutions: Enabling technologies = integrated solutions that helpwith multiple functions in the value chain.
4. Large number of features: Increasing competition = more features offered.
5. Compatibility with business trading partners: Improves internal systemsconformity to industry standards + enhances its position in systems integration.
6. Cost savings: Infrastructure products save both time and money.
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Company Core Business
Commerce One Value chain management B2B portals
Redback Networks Broadband access solutions
Vignette E-relationship management through customized content
F5 Networks Internet traffic and content management
loadbalancing traffic across servers
Vitria Technology Value chain management
Exodus Scalable Web hosting services
E.piphany Customer relationship management
Internet Enabling Companies
Source: Adapted from Pegasus Research
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Overview
Many Products Capitalize on Internet PropertiesCreating Customer Value OnlineOnline Benefits
AttributesBrandingSupport ServicesLabeling
E-Marketing Enhanced Product DevelopmentCustomer CodesignElectronic InputWeb Content DevelopmentInternet Properties Spur OtherOpportunitiesNew-Product Strategies for E-Marketing
A Taxonomy for Internet Products
New-Product TrendsValue Chain AutomationPromotion
Product ConfigurationBrokeragesCustomer ServiceDistributionRelationship MarketingOutsourcingInformation SharingCentralizing Information
AccessMultimedia
Assistive TechnologiesThree Types of Convergence
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Promotion
2. Targeted Advertising: Marketers go to great lengths to target ads to appropriate demographic
and psychographic segments.
User surfing patterns form an excellent basis by which to target ads. DoubleClick sells services to target ads based on users surfing habits +
can follow the user from site to site around the Internet and target adsaccordingly.
3. Personalized Promotions: Many sites create custom Web pages for each user, targeting specific
promotions for each users individual preferences. Dynamically creating Web pages = a complex programming task. Firms such as Vignette automate dynamic creation of Web pages.
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Overview
Many Products Capitalize on Internet PropertiesCreating Customer Value OnlineOnline Benefits
AttributesBrandingSupport ServicesLabeling
E-Marketing Enhanced Product DevelopmentCustomer CodesignElectronic InputWeb Content DevelopmentInternet Properties Spur OtherOpportunitiesNew-Product Strategies for E-Marketing
A Taxonomy for Internet Products
New-Product TrendsValue Chain AutomationPromotion
Product ConfigurationBrokeragesCustomer ServiceDistributionRelationship MarketingOutsourcingInformation SharingCentralizing Information
AccessMultimedia
Assistive TechnologiesThree Types of Convergence
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Product Configuration
Proper component configuration = difficult tasks in high-tech productssale:
Well-trained sales force can properly configure products for end user,
BUT, many end users prefer to configure their own products online: For convenience, To speed delivery of the product, Self-service = product benefit.
Automatic configuration requires a software program = expert system. Enabling software guide users through the process of product
configuration based on their needs. Clients = communications, healthcare, and high-tech manufacturing
industries, where configurations for equipment and services are oftencomplex.
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Overview
Many Products Capitalize on Internet PropertiesCreating Customer Value OnlineOnline Benefits
AttributesBrandingSupport ServicesLabeling
E-Marketing Enhanced Product DevelopmentCustomer CodesignElectronic InputWeb Content DevelopmentInternet Properties Spur OtherOpportunitiesNew-Product Strategies for E-Marketing
A Taxonomy for Internet Products
New-Product TrendsValue Chain AutomationPromotion
Product ConfigurationBrokeragesCustomer ServiceDistributionRelationship MarketingOutsourcingInformation SharingCentralizing Information
AccessMultimedia
Assistive TechnologiesThree Types of Convergence
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Brokerages
Web auction sites: Are all the rage in the B2B, B2C, and C2C markets. Difficult to write + long to test and debug the software. Key characteristic = reliability.
Airline, food, gas, and water industries use reverse auction software todrive down prices for products purchased from their suppliers.
Payment/Financing: Barriers to trading in the B2B market = processing credit for purchases. Enabling software = automates providing, verifying, and processing
credit. Key characteristic = reliability. Software support B2B payments + financing + customer credit approvals.
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Overview
Many Products Capitalize on Internet PropertiesCreating Customer Value OnlineOnline Benefits
AttributesBrandingSupport ServicesLabeling
E-Marketing Enhanced Product DevelopmentCustomer CodesignElectronic InputWeb Content DevelopmentInternet Properties Spur OtherOpportunitiesNew-Product Strategies for E-Marketing
A Taxonomy for Internet Products
New-Product TrendsValue Chain AutomationPromotion
Product ConfigurationBrokeragesCustomer ServiceDistributionRelationship MarketingOutsourcingInformation SharingCentralizing Information
AccessMultimedia
Assistive TechnologiesThree Types of Convergence
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Customer Service
Generally, businesses dont respond very promptly to e-mail inquiries andcomplaints.
Ideally: messages should receive a personal response with 48 hours. BUT employee costs for e-mail customer service can be prohibitive, + businesses prefer to develop a consistent response to similar problems.
Enabling softwares help route + respond to e-mail customer inquiries: Immediately acknowledges e-mail + promises a response within a fixed
time frame, Can route the message ( scan for keywords) to the appropriate customer
service representative, Can call up previously messages + account information to help form a
context for the inquiry, Can compose a personalized response using artificial intelligence! Customer service representatives accept the generated response or
compose an entirely new response. Companies can double the productivity of their e-mail response teams.
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Overview
Many Products Capitalize on Internet PropertiesCreating Customer Value OnlineOnline Benefits
AttributesBrandingSupport ServicesLabeling
E-Marketing Enhanced Product DevelopmentCustomer CodesignElectronic InputWeb Content DevelopmentInternet Properties Spur OtherOpportunitiesNew-Product Strategies for E-Marketing
A Taxonomy for Internet Products
New-Product TrendsValue Chain AutomationPromotion
Product ConfigurationBrokeragesCustomer ServiceDistributionRelationship MarketingOutsourcingInformation SharingCentralizing Information
AccessMultimedia
Assistive TechnologiesThree Types of Convergence
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Distribution
Goal =just-in-time (JIT) delivery of products to avoidcarrying excessive amounts of inventory.
Main difficulty = coordination. Solution = enabling software that supports value chain
management.
Sun Microsystems: Does not make any of the components that go into its computers,
Coordinates all interactions in its value chain,
= the activities of its suppliers and its suppliers suppliers to ensurecontinued viability of the entire value chain.
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Overview
Many Products Capitalize on Internet PropertiesCreating Customer Value OnlineOnline Benefits
AttributesBrandingSupport ServicesLabeling
E-Marketing Enhanced Product DevelopmentCustomer CodesignElectronic InputWeb Content DevelopmentInternet Properties Spur OtherOpportunitiesNew-Product Strategies for E-Marketing
A Taxonomy for Internet Products
New-Product TrendsValue Chain AutomationPromotionProduct ConfigurationBrokeragesCustomer ServiceDistributionRelationship MarketingOutsourcingInformation SharingCentralizing Information
AccessMultimedia
Assistive TechnologiesThree Types of Convergence
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Relationship Marketing
Datamining customer information reveal importantmarketing opportunities.
Enabling software automates the task of profilingcustomers:
Identify customers characteristics,
Target e-mail promotions, Provide real-time profiling of consumer behavior
dynamic site configuration in response to that behavior.
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Overview
Many Products Capitalize on Internet PropertiesCreating Customer Value OnlineOnline Benefits
AttributesBrandingSupport ServicesLabeling
E-Marketing Enhanced Product DevelopmentCustomer CodesignElectronic Input
Web Content DevelopmentInternet Properties Spur OtherOpportunitiesNew-Product Strategies for E-Marketing
A Taxonomy for Internet Products
New-Product TrendsValue Chain AutomationPromotionProduct ConfigurationBrokeragesCustomer ServiceDistributionRelationship MarketingOutsourcingInformation Sharing
Centralizing InformationAccessMultimedia
Assistive TechnologiesThree Types of Convergence
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Outsourcing
Application service providers (ASPs) perform off-sitevalue chain functions for their client businesses.
Example =outsource payroll: manager logs onto the ASPs
Web site + enters the hour totals for each employee +hits submit, and a courier delivers the checks the nextday!
Distinction between application service providers and theenablers = location + support Enablers: business license software + install, configure, and
maintain the software on-site,
ASP: the software resides at the ASPs site + the businessaccesses the application remotely via a Web browser.
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Outsourcing
Advantages of the ASP: Lower startup costs, Lower or no information technology staff costs,
Lower switching costs, Particularly attractive for small businesses.
Disadvantages of the ASP: Lack of control over key customer data and business processes.
ASPs: Some can run an entire business = aggregate almost all of the value
chain functions for the client businesses. Other ASPs focus on a single value chain function such as payroll or
customer service.
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Application Service Provider Database
Source:WebHarbor.com
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Information Sharing
Today businesses are sharing information with their value chain partners. Electronic data interchange (EDI)= generic term for the exchange of data
between businesses in digital form.
Benefits: Consistent standards = data do not need to be rekeyed by the receiving
business, Exchange is easier if the businesses agree on a common format for
exchanging data, BUT, this is complicated because most businesses store data in
proprietary formats.
2 solutions: Open buying on the Internet(OBI) = each business translate its data to a
common format for exchange, XML, allows each business to keep its own format while sending the
instructions for translation to the receiving business.
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Information Sharing
Extensible Markup Language (XML): Extensible = the language can be extended by the user to
accommodate new types of data. It has strong support = it is built into Internet Explorer, Netscape
Navigator, the MS-Office suite, etc. A number of industry standards groups base their content
definitions on XML.
To better understand XML:
Consider that a cook who is baking a cake needs both aningredient list and a recipe to be successful, The ingredient list corresponds to a companys data, The recipe corresponds to XML formatting instructions, The company receiving the information must have both in order to
decode the communication.
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Overview
Many Products Capitalize on Internet PropertiesCreating Customer Value OnlineOnline Benefits
AttributesBrandingSupport ServicesLabeling
E-Marketing Enhanced Product DevelopmentCustomer CodesignElectronic Input
Web Content DevelopmentInternet Properties Spur OtherOpportunitiesNew-Product Strategies for E-Marketing
A Taxonomy for Internet Products
New-Product TrendsValue Chain AutomationPromotionProduct ConfigurationBrokeragesCustomer ServiceDistributionRelationship MarketingOutsourcingInformation Sharing
Centralizing InformationAccessMultimedia
Assistive TechnologiesThree Types of Convergence
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Centralizing Information Access
Corporate portals: Use Web-based technology to create sites specifically for a
particular companys employees. Are an extension of an earlier concept, the intranet (site for
internal consumption for corporate information such as news,policies, and procedures). A wide variety of corporate information storessuch as sales data,
groupware documents, and calendars. Translate data from all of the information stores into a common
interface for presentation to the employee.
Have the potential to save businesses millions of dollars byreducing the time that their employees spend searching forinformation.
Example: My.yahoo where users can customize the screen displayto include categories of information that they find useful.
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Overview
Many Products Capitalize on Internet PropertiesCreating Customer Value OnlineOnline Benefits
AttributesBrandingSupport ServicesLabeling
E-Marketing Enhanced Product DevelopmentCustomer CodesignElectronic Input
Web Content DevelopmentInternet Properties Spur OtherOpportunitiesNew-Product Strategies for E-Marketing
A Taxonomy for Internet Products
New-Product TrendsValue Chain AutomationPromotionProduct ConfigurationBrokeragesCustomer ServiceDistributionRelationship MarketingOutsourcingInformation Sharing
Centralizing InformationAccessMultimedia
Assistive TechnologiesThree Types of Convergence
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Multimedia
Real-time multimediasound and video: Currently of fairly low quality when viewed or heard on a computer over the
Net. Limiting factor = lack of sufficient bandwidth. The quality of transmission is
directly proportional to the bandwidth of the communications channel.
Most users still connect to the Internet with modems operating at 56K orslower. BUT: growing penetration of high-speed access via cable modems, DSL
modems, and wireless technologies. AND, Cisco systems + other networking companies are working on
technologies for increased bandwidth at lower prices.
Multimedia technologies are available:
Conferencing software, Webcams, CD-quality audio, Streaming video, Internet telephony VoIP.
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Multimedia
MP3: Standard for CD-quality audio. Began almost as a renegade movement that has now become
mainstream. WinAmp = one of the first players to decode MP3 files.
But how does the user find the files online? Napster = first major service to allow users to share MP3 files from their
computers with the entire Net community. It maintained a database of MP3 availability but did not actually provide
the music. Legal battles with the recording industry finally forced Napster into
bankruptcy. Napster was still hoping to reemerge from bankruptcy thanks to a
partnership with Bertelsmann AG. BUT Napster may have trouble winning back market share from the
hundreds of MP3 search tools and services such as Morpheus.
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Multimedia
Streaming video: Requires more bandwidth than streaming audio. More heavily constrained by the lack of bandwidth online. BUT observers see a bright future for live video and video on
demand. broadcast industry and the video rental business could be
threatened by its development. SonicBlue's ReplayTV, a competitor to Sony's TiVo, allows users to
record broadcast video and then share it over broadband Internetconnections with other SonicBlue users.
Internet telephony: Transmits phone calls relies on the Web eliminating long-distance
charges.
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Multimedia
Voice over Internet Protocol (VoIP):
Major constraint = bandwidth. Voice quality is quite good, but it is not reliable.
Requires less bandwidth than streaming video, Internet telephonyis an attractive business proposition.
Net2Phone offers products that can complete long-distance calls
off the Net. Represents a threat to long-distance phone companies (for
international calls).
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Overview
Many Products Capitalize on Internet PropertiesCreating Customer Value OnlineOnline Benefits
AttributesBrandingSupport ServicesLabeling
E-Marketing Enhanced Product DevelopmentCustomer CodesignElectronic Input
Web Content DevelopmentInternet Properties Spur OtherOpportunitiesNew-Product Strategies for E-Marketing
A Taxonomy for Internet Products
New-Product TrendsValue Chain AutomationPromotionProduct ConfigurationBrokeragesCustomer ServiceDistributionRelationship MarketingOutsourcingInformation Sharing
Centralizing InformationAccessMultimediaAssistive TechnologiesThree Types of Convergence
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Assistive Technologies
Designed to help people with disabilities operate their computers.
Potential customers = Millions of people are for these productsnotjust disabled people.
Assistive technologies do allow persons with certain disabilities toproductively enter the workforce:
Voice-activated computers: Computer can be completely controlled by voice commands. In call centers, the caller interacts with the computer by speaking
commands.
Large-type screen displays. Help people with poor vision see andnavigate on their computer screens.
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Assistive Technologies
Type-to-speech or braille: Allows blind people to interact with a computer. Reads Internet pages aloud. Technologies are also being built into automobiles such as GMs OnStar system
= drivers can listen to e-mail messages and stock quotes while driving.
Important implications for Web page design = designers avoid graphics sincethe technology can only read text.
Speech-to-text telephony. The telecommunications device for the deaf(TDD) converts speech to text, allowing deaf people to hold telephoneconversations or conference online.
Eye gaze-to-type: People who are completely paralyzed can control a computer using eye gaze-
to-type technologies. The user controls her computer by staring at control buttons on the screen.
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Home Page Reader
Source:www-3.ibm.com/able/hpr.htm
http://www-3.ibm.com/able/hpr.htmhttp://www-3.ibm.com/able/hpr.htmhttp://www-3.ibm.com/able/hpr.htmhttp://www-3.ibm.com/able/hpr.htm7/30/2019 Chapter 10 f
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Overview
Many Products Capitalize on Internet PropertiesCreating Customer Value OnlineOnline Benefits
AttributesBrandingSupport ServicesLabeling
E-Marketing Enhanced Product DevelopmentCustomer CodesignElectronic Input
Web Content DevelopmentInternet Properties Spur OtherOpportunitiesNew-Product Strategies for E-Marketing
A Taxonomy for Internet Products
New-Product TrendsValue Chain AutomationPromotionProduct ConfigurationBrokeragesCustomer ServiceDistributionRelationship MarketingOutsourcingInformation Sharing
Centralizing InformationAccessMultimedia
Assistive TechnologiesThree Types of Convergence
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Three Types of Convergence
The marketing opportunities in media convergence are
tremendous.
3 types of convergence are attracting attention today:
(1) voice, video, and data on corporate networks,
(2) wireless devices and the Web,
(3) the Web with broadcast media.
Voice Video
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Voice, Video,and Data on Corporate Networks
Will allow corporations to have:
1 single switch for voice, video, and datacommunications rather than 3 separate systems.
Cisco is leading the charge in this market:
Supporting both the infrastructure and end userappliances such as IP telephones.
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Wireless Devices and the Web
Wireless devices: Cell phones and personal digital assistants(PDAs), With Web access + sometimes a global positioning function (GPS), Race to see whether cell phones or PDAs will become the preferred
platform for wireless Internet access, Many people think these devices are likely to merge = a single device
would serve as a combination cell phone, PDA, and Web browser.
Limitations:1. The screen size of PDAs & cell phones: Tiny cell phone screen can be used to check e-mail and retrieve weather,
news, and stock quotes. BUT Web content is designed for color on much larger displays. Web sites are starting to create content for the Wireless Access
Protocol (WAP) so that it displays correctly on these tiny screens. Interesting application running on a PDA is Auctioneer, used to track eBay
auctions.
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Wireless Devices and the Web
2. Bandwidth: Wireless networks are much slower than land line networks. BUT the market is growing rapidly. One technology to watch = WiFi networks built on the Ethernet
802.11b standard + 3G wireless cell phone networks.
Outside of the US, the current & potential market for wireless Web accessis greater (a higher penetration rate for mobile phone communications).
Why? Telephone companies in other countries usually charge by the minute for local
calls. Many users conclude that if they are going to be charged by the minuteanyway, they might as well have the additional benefit of wireless access. Consumers in many countries have to wait years for a telephone line to be
installedat a high price.
In Japan, DoCoMos i-mode service has attracted millions of users whocheck weather forecasts, sports scores, maps, stock trading, banking, etc.
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Wireless Devices and the Web
Wireless mobility of the future will have 6 components :1. Content provider. The firm creating wireless versions of current Web
content. This might include sites such as travelocity.com and B2B servicessuch as sales force automation.
2. Portal software. These firmssuch as Yahoo!, AOL, and Microsoftwill
provide a higher level of personalization, maintaining user preferences fora wide variety of content.3. Data aggregation agent. Companies such as Yodlee, Acxiom, and
Microsoft keep track of a users login and password information for quickmobile access to banks, stock brokerage accounts, and so fortha boonto business travelers.
4. Infrastructure. These firms provide wireless Internet access, parallel to
non-mobile ISPs.5. Transaction providers. American Express, Visa, and others will serve
online retailers by processing payments.6. Mobile devices. Cell phones + PDAs, or some convergence of the two
platforms, allowing the user to send and receive data.
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Broadcast Media and the Internet
iTV (interactive TV): Convergence is between broadcast media (television and radio) and the
Internet. Result = single appliance to receive broadcast content over the Internet. Major obstacle = lack of bandwidth to support full-motion video. Cable modems, DSL modems, and fixed wireless access to the home may
provide more bandwidth.
MSN TV: Users simply browse the Web on a TV screen. Not very successful because of the low resolution of TV screens +
consumers are not used to reading on a TV screen.
ABCs Enhanced TV: Users need to log onto ABCs Web site while they are watching TV. Users can get more information about the current broadcast, play games
with other users, and participate in polls and chats.
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Broadcast Media and the Internet
When the bandwidth does become available, it is unlikely that theWeb will be used only to serve TV and audio on demand.
A taste of the future = BrilliantDigital produces multipath movies inwhich viewers take a more active role.
Future products depend on the telecommunications industry: Since mid 2000: The industry started to collapse. $2 trillion lost in valuation + numerous high profile bankruptcies. Markets were flooded with products and services driving prices down
below profitable levels.
The products that survive in the long-term will be those that bestdeliver customer value.
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Infrastructure
* Verizon
* Sprint
Transaction
Provider
* AmEx
* Visa
Content Provider
Portal Software
Data Aggegration
Agent
Mobile Device
* Palm
* Nokia
* HP
Six Components of Mobile Communications
Source: Information from Peppers and Rogers Group (2001)
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Key Terms
Application service providers(ASPs)Assistive technologies
BrandCobrandingMedia ConvergenceCorporate PortalsDiscontinuous innovationsDomain name
Enabling technologiesExtensible Markup Language(XML)Internet telephony
IP address (Internet Protocol)
Just-In-Time (JIT) deliveryNew product linesOutsourcing
Personal Digital Assistant(PDA)ProductStreaming audioStreaming videoURL (Uniform Resource
Locator)Value chain automationVoice over Internet Protocol(VoIP)Wireless Access Protocol(WAP)
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Review Questions1. What are the arguments for and against using existing brand
names on the Web?2. List six new-product strategy categories and provide Internet
examples of each.3. Why is value tied to the entire product experience?4. What are some important criteria for Internet domain naming?5. How does labeling work on the Internet?6. What techniques can e-marketers employ to enhance new
product development?7. Why do e-marketers need to forecast revenue, expenses, ROI,
and payout for new products under consideration?8. What are the advantages to buying B2B software off the shelf?9. Why are technology standards like RosettaNet important?10. What is the major limitation to the use of multimedia over the
Net?11. What are assistive technologies?
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Discussion Questions
1. Of the three types of convergence, which do you think has thegreatest market opportunity? Why?
2. How can automating the value chain increase customer value?
3. Under what circumstances would it make sense to take an existingbrand name online? When would it not make sense?
4. Why do e-marketers often have difficulty estimating the revenues,costs, and payout or ROI of a new product under development?
5. What are some of the consumer privacy issues related to enabling
products for online promotional activities such as targetedadvertising and personalized promotions? How would you, as an e-marketer, respond to these privacy issues?
6 Do you agree with the CEO of Classmates com who says his firm