Unit 3 E-Marketing Management: Product-On Internet
Unit 3 E-Marketing Management: Product-On Internet
Unit 3 E-Marketing Management: Product-On Internet
E-MARKETING MANAGEMENT
PRODUCT- ON INTERNET
Products to sell online change everyday because there is massive competition. Major
companies and very intelligent individuals are constantly monitoring the market waiting to
capitalize on that next niche product that is in high demand and low supply.
Amazon is an empire. They serve some key information right up to anybody who would like
to utilize it. Figure out the niche market you are attempting to penetrate and then sort the
items by best sellers.
PRODUCT PRICE
DISTRIBUTION
PRODUCT BENEFITS
The Internet created a new set of consumer desired benefits. Which Users(customer)expects
are as follows:
Support
Attributes Branding
Services
Labeling Packaging
Product features can include color, taste, style, size, and speed of service.
Benefits also are the same features from a user perspective
When a firm registers the information with the Patent Office, it becomes a trademark.
For ecommerce businesses, the correct labelling of products is even more important. In
online shopping, the customer’s buying decision depends solely on his/her experience while
looking at the product’s picture, its label in the picture, and the information given on the
label.
Packaging
Packaging is the protector of the product within. It protects the product from physical impacts
such as hitting, wetting, and bruising. Packaging allows for the product to reach the consumer
in the most economical way possible and creates ease of storage. Another important role is to
provide the consumer with ease of choice and usage with the information it holds. The
weight, price, production date, use by date, ingredients, name of producer company, usage
details written on the packaging provides major convenience to the seller and the consumer .
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 (e.g., the Internet Explorer Web browser). This section
explores product mix strategies to aid marketers in integrating offline and online offerings.
2) New-Product Lines: These are introduced when companies take an existing brand
name and create new products in a completely different category.
3) Additions to Existing Product Lines: This occurs when organizations add a new
flavour, size, or other variation to a current product line.
4) Improvements or Revisions of Existing Products: These products are introduced as
“new and improved” and, thus, replace the old product.
5) Repositioned Products: These are current products that are either targeted to different
markets or promoted for new uses.
Price
Price is the amount of money charged for a product or service. More broadly, price is the
sum of all the values (such as money, time, energy, and psychic cost) that buyers exchange
for the benefits of having o r using a good or service.
Pricing Strategies:
1) Fixed pricing (also called menu pricing): Sellers set the price and buyers take it or leave
it. It shows same price for everyone.
2) Dynamic Pricing: The strategy of offering different prices to different customers
Penetration Pricing: when ecommerce introduce a new product to customers, but are
unsure how successful it may be, consider leveraging the power of penetration pricing
to draw them to their ecommerce store and away from your competitor’s. Under this
model, a new product is initially sold under market value in order to gauge its
popularity, and then the price is incrementally adjusted to match its true market value.
Segmented Pricing: Not everyone is willing to pay the same amount for the same
product. For this reason, ecommerce stores can boost their sales by implementing a
segmented, or “tiered” pricing strategy to capture as much of the market as possible.
This pricing strategy sees multiple tiers from “Value” to “Premium Plus” so that
consumers with different budgets can access their product.
Service Time: Many e-commerce businesses charge more for faster services. For
instance, same-day service or one-day delivery can and should result in a premium
service charge. This way, you can maximize profits by capitalizing on the increased
demand for a higher-quality product or service from a segment of your customer base.
One-stop shopping: The internet opened the door for companies to increase customer
convenience through one-stop shopping. Auto Mall Online has partnered with a
number of firms to provide automobile price comparisons, research about various
models and manufacturers, financing and insurance information, and service options.
Distribution channel
A distribution channel is a group of interdependent firms that work together to transfer
product and information from the supplier to the consumer. It is composed of the following
participants:
Four major elements combine to form a company’s channel structure, and all affect
internet marketing strategy as shown in the sections that follow:
Agents usually represent either the buyer or seller, depending upon who hires and
pays them. They facilitate transactions between buyers and sellers but do not take title
to the goods.
Content Sponsorship: Companies create Web sites, attract a lot of traffic, and sell
advertising.
The length of a distribution channel refers to the number of intermediaries between the
supplier and the consumer.
arketing Communications
2) Logistical Functions:
Logistical functions include physical distribution activities such as transportation and
inventory storage, as well as the function of aggregating product.
Transportation
Inventory storage
Aggregation of products
3) Third-party logistics provider such as UPS or FedEx. Taking logistics one step
further, third parties can also manage the company’s supply chain and provide value-
added services such as product configuration and subassembly. The logistics
providers will even handle the order processes, replenish stock when needed, and
assign tracking numbers so customers can find their orders.
UPS
FedEx