E-marketing Part 2

Report
E-Marketing
Chapter 8, p. 415 - 449
Trine & Maiken
Disposition
•
The '6 Is' of e-marketing
•
Marketing Mix - the 4 Ps of product
•
Online branding - The importance of
branding online
The '6 Is' of e-marketing
1. Interactivity
2. Intelligence
3. Individualization
4. Integration
5. Industry restructuring
6. Independence of location
"Recognizing the differences between internet and other
media is important to achieve success in channel
promotion and channel satisfaction and lead to positive
channel outcomes and profitability." p. 415
Interactivity
"[...] Interactivity is a key characteristic of the Internet which
enables companies to communicate with customers in a
new way." p. 415
Intelligence
The
—
internet collects marketing research
The
—
customers perception of products and
services
Every
—
click is beeing recorded
Individualization
The products are tailored to the individual
Personalization
Customer relationship
Integration
Consider integration of media - how to
complement different channels to get
customers
Changing channels during the buying process;
'mixed-mode buying' (switching between
online/offline)
Industry restructuring
Disintermediation, reintermediation and
countermediation when developing emarketing strategy
"How do our offerings compare to those of
competitors in terms of
features, benefits and price? "
Independence of location
The Internet makes it possible to sell to a
country without a local
sales or customer service force
The physical shops will still be necessary for
some products
Marketing Mix - the 4 Ps of product
The marketing mix is applied frequently when developing
marketing strategies
It provides a simple framework for varying different
elements of the product offering to influence the demand
for products within target markets
•
•
•
•
Product
Price
Place
Promotion
Product
There are many alternatives for varying the Product
new digital products = information products - delivered over
the web
Some companies only offer a subset of products online
Alternatively, a company may have a fuller catalogue
available online
using the Internet to vary the extended product is most
Chaffey and Smith (2008) suggest these examples of
how the Internet can be used to vary the extended product:
_ Endorsements
_ Awards
_ Testimonies
_ Customer lists
_ Customer comments
_ Warranties
_ Guarantees
_ Money-back offers
_ Customer service (see People, Process and Physical evidence)
_ Incorporating tools to help users during their use of the product.
Price
Refers to an organization's pricing policies,
used to define pricing models and to set
prices for products.
It's about setting the right price!
For example, to set the price you need to know
how many that are demanding for the
product.
Place
- The Internet has the greatest implications for Place =
global reach
- Issues of trust - most products are still sourced locally
- Apple iTunes
has proved successful in offering this service worldwide.
Promotion
- Promotion is usually part of a communications strategy
- Selection of target markets, positioning and integration of different
communications tools
Two approaches:
Specify the communications techniques required for different stages of the
buying process
How the Internet can supplement the range of promotional activities such as
advertising, sales promotions, PR and direct marketing.
Online branding
What is a brand?
"It is the sum of the characteristics of a product or service
perceived by a user." (p. 434)
People thinks of branding as the logo - it's dependent on a
customer's psychological affinity for a product
Credible brand generates customer value by:
- Reducing perceived risk
- Reducing information search costs
- Creating a favourable, trustworthy perception of the
Online branding
A method by which the internet can change
branding is that online:
"the first-hand experience of the brand is a
more powerful token of trust than the
perception of the brand". Jevons and Gabbot (2000)
- Online the customer can interact with the brand

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