E-Marketing4/EJudyStrauss,AdelIl.El-Ansary,andRaymond FrostChapter10:Product1000007001070100111101000010010111010010C2006PrenticeHalln
©2006 Prentice Hall 10-1 E-Marketing 4/E Judy Strauss, Adel I. El-Ansary, and Raymond Frost Chapter 10: Product
Chapter 10 ObjectivesAfterreadingChapter10youwillbeableto.Defineproduct and describe how it contributestocustomervalueDiscusshowattributes,branding,supportservices,and labeling applyto onlineproductsOutline someof thekeyfactorsin e-marketingenhancedproductdevelopment.ldentifythe six categoriesof new-productstrategies and the six classificationsforasuggested Internet product taxonomy.07007010100111010000100101110100102006PrenticeHa
©2006 Prentice Hall 10-2 Chapter 10 Objectives • After reading Chapter 10 you will be able to: • Define product and describe how it contributes to customer value. • Discuss how attributes, branding, support services, and labeling apply to online products. • Outline some of the key factors in e-marketing enhanced product development. • Identify the six categories of new-product strategies and the six classifications for a suggested Internet product taxonomy
The Google StoryIn1998.co-foundersBrinandPagedeliveredan innovative new search strategy thatrankedresultsonpopularityaswellaskeywords.GeneratesrevenuefromtwoB2Bmarkets.·Licensing of its search services.·Sales of keyword banners to advertisersInnovativeproducts andstrongcustomerfocusare driving its success and profitabilityGo to Google.com and explore Froogle,GMailand the Tool Bar. Do you agree that they arehighly innovativeproducts?7000000111701000070070710100102006PrenticeH
©2006 Prentice Hall 10-3 • In 1998, co-founders Brin and Page delivered an innovative new search strategy that ranked results on popularity as well as keywords. • Generates revenue from two B2B markets: • Licensing of its search services. • Sales of keyword banners to advertisers. • Innovative products and strong customer focus are driving its success and profitability. • Go to Google.com and explore Froogle, GMail and the Tool Bar. Do you agree that they are highly innovative products? The Google Story
Many Products Capitalize onInternetPropertiesAproductisabundleofbenefitsthatsatisfiesneedsoforganizationsorconsumersIncludestangiblegoods,services,ideas,peopleandplaces.·Productssuchas search engines are uniquetotheInternetwhile others simplyusetheInternet asanew distribution channel.07007070100111001000010010111010010C2006PrenticeHal
©2006 Prentice Hall 10-4 Many Products Capitalize on Internet Properties • A product is a bundle of benefits that satisfies needs of organizations or consumers. • Includes tangible goods, services, ideas, people and places. • Products such as search engines are unique to the Internet while others simply use the Internet as a new distribution channel
Creating Customer Value OnlineCustomervalue=benefits-costsProductdecisionsmustbemadethatdeliverbenefitstocustomers·Attributes·BrandingSupportServices·Labeling·Packaging000007001010000111101000010010111010010C2006PrenticeHall000
©2006 Prentice Hall 10-5 Creating Customer Value Online • Customer value = benefits - costs • Product decisions must be made that deliver benefits to customers: • Attributes • Branding • Support Services • Labeling • Packaging