Product DifferentiationTheInternetdifferentiates itselfbyprovidingalimitlessassortmentofproductsDifferentiationmayincludecustomization,bundling and attractive pricing of productsInternetsalesmaynotrelyasheavilyonproductpackagingasdotraditional retailersPackagingminimizationwill reducewasteandcosts.00000017000007000700070C2006PrenticeHal
©2006 Prentice Hall 9-6 • The Internet differentiates itself by providing a limitless assortment of products. • Differentiation may include customization, bundling and attractive pricing of products. • Internet sales may not rely as heavily on product packaging as do traditional retailers. • Packaging minimization will reduce waste and costs. Product Differentiation
Service Differentiation.Customerservicecanbeenhancedby24hourcustomerfeedback through e-mail..Homedelivery ofgroceriesand online bankingand securities trading are becomingincreasinglypopular.Todaysuchservicessupplementtraditionalservices,butmaysomedayreplacethem7007:070100111701000010010111010010C2006PrenticeHal
©2006 Prentice Hall 9-7 Service Differentiation • Customer service can be enhanced by 24 hour customer feedback through e-mail. • Home delivery of groceries and online banking and securities trading are becoming increasingly popular. • Today such services supplement traditional services, but may someday replace them
Channel DifferentiationThe Internet is a location-free.time-freedistribution and communication channelTheInternetservesasatransactionanddistribution channelTheInternetprovideshighlyspecializedpersonalservicesand“doityourself"websites7001070100111001000010010111010010C2006PrenticeHal
©2006 Prentice Hall 9-8 • The Internet is a location-free, time-free distribution and communication channel. • The Internet serves as a transaction and distribution channel. • The Internet provides highly specialized personal services and “do it yourself” websites. Channel Differentiation