TIM3221

INTERNET MARKETING

LEC 03:
PRODUCT
Learning Outcomes
After the end of Lecture 3, 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.

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The Google Story

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The Google Story (cont.)

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What Is a Product?

■ A Product Defined
– A good, a service, or an idea received in an exchange
– It can be tangible (a goods) or intangible (a service or an
idea) or a combination of both.
– It can include functional, social, and psychological
utilities or benefits.

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Types of Products
Convenience Goods: Consumer has knowledge and purchases with a
minimum of effort.
Examples: fast foods, confectionaries, and cigarettes, with low value.
Shopping Goods: Consumer has little prior knowledge about product
attributes (quality & feature), prices, or alternatives and spends time
acquiring information.
Examples: Clothing Items, Televisions, Radio, Foot Wears, Home
Furnishing, Jewelleries
Specialty Goods: These are particular brands, stores, and persons to
which consumer is loyal. Substitutes are not acceptable.
Examples: expensive watches, perfumes, men’s suits, women’s bags,
wedding gowns, diamonds etc.

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Creating Customer Value Online
■ First, it is the entire product experience. It starts
with a customer’s first awareness of a product,
continues at all customer touch points (including
things such as the Web site experience and e-
mail from a firm), and ends with the actual
product usage and post purchase customer
service. It even includes the compliments a
consumer gets from friends while whipping out
that iPad, or the fun he or she has when
messaging friends on Skype or Facebook.

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Creating Customer Value Online

■ Customer value = benefits - costs

■ Product decisions must be made that deliver
benefits to customers:
– Attributes
– Branding
– Support Services
– Labeling
– Packaging

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■ Through Web site registration and other techniques, Web
sites greet users by name and suggest product offerings
of interest based on previous purchases. For instance, a
returning customer to Amazon.com gets an item with his
name on it: “Hello Sam. We have recommendations for
you.” Clicking on the link reveals a list of items that Sam
might be interested in examining, based on his previous
purchases from Amazon or those of similar buyers. Going
one step further, Amazon allows individuals to create
“wish lists,” thus shifting this data storage function from
the customer to the retailer: more benefits. Another form
of personalization occurs when sites allow registration via
a visitor’s Facebook or other social network membership.
One big benefit is about making it convenient for the
customer.
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Attributes

■ Attributes include quality and features.

■ The Internet increases customer benefits in many
ways.
– Media, music, software and other digital
products can be presented on the Web.
– Mass customization is possible.
– User personalization of the shopping
experience can be achieved.

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Branding

■ Branding includes name, term, design, symbol, or other

feature that identifies the goods and services of a seller.
■ Brand Name -- a word, letter (number), group of words,
or letters (numbers) that can be spoken.
■ Brand Mark -- a symbol, design, or distinctive coloring or
lettering that cannot be spoken.
■ Trademark -- a brand name or mark or combination
thereof that is given legal protection.

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■ A brand includes a name (McDonald’s), a symbol
golden arches), or other identifying information.
■ When a firm registers that information with the U.S.
Patent Office, it becomes a trademark and
■ is legally protected from imitation.

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 Highest Value - Global Brands

Source: https://www.forbes.com/the-worlds-most-valuable-brands/#19c9584b119c 15
 Highest Value - Global Brands

Source: https://www.interbrand.com/best-brands/ 16
 Highest Value - Global Brands

Source: https://www.interbrand.com/best-brands/ 17
Intellectual Property Corporation of Malaysia

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Brand Relationships

Advocacy
Tell others about the brand

Community Communicate with each other

Intensity

Communicate with company

Connection
between consumers
Identity Display the brand proudly
Is on the list of
Awareness possibilities

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Branding Decisions for Web Products
■ Existing vs. new?
■ Different names to avoid risk if the new product or channel
should fail.

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Co-Branding

■ Two companies put their brand names on a

product:

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Labeling

Product
ingredients
Brand name

Sponsoring
User instructions firm

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Labeling (con’t)
■ Purposes (pg222)
– Help identify the product
■Display brand name and unique graphics
– Support promotional efforts for the product
■Coupons, discounts, product features
– Provide legally required labeling information
■Fair Packaging and Labeling Act of 1966
■Nutrition Labeling Act of 1990
– Provide information on product origin
■“Made in the USA”
– Allow sharing, commenting, or registering via social media
■ Present social media logos as labels
■ These logos add to the credibility and technology competence
of the original company.

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Labeling (con’t)
■ Labeling has digital equivalents in the online world.
– Online “labels” provide information about installing and
using software.
– Online “labels” also provide extensive legal information
about the software product.
■ Online firms may add the Better Business logo or
TRUSTe privacy shield to their sites.

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Labeling (con’t)

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Labeling (con’t)

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Labeling (con’t)

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Labeling (con’t)

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Labeling (con’t)

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Classifications of Internet Products

Hardware

Software

Services

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Software
Search engine
Web browser
Audio/video enabling software
Audio/video editing software
Audio/video player software
Driver

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Hardware
 Laptop
 PC
 Modem
 Printer
 Switch
 PDA
 Router

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Services

Auto-updates
E-mail
Web-based virus scan
E-commerce consulting
Web design
Web development

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Strategies of Product Mix

New invention

New
New variation
product-line

New targeted Lower-cost

Improvement market product

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