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Chapter 2

The Online
Marketing Mix

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and India being a younger market. 2015. to©$8. e-commerce is growing at the rate of 28%.5% of the total retail market) rose from about $2.5 Oxfordbillion inPress University 2012.• The figures from the Internet and Mobile Association of India (IAMAI) show that the Internet users in India have grown beyond 200 million. showed that India’s e- commerce market (6.5 billion in 2009.3 billion in 2011. • Online Shopping: Review and Outlook in 2013. the growth of e-commerce is expected to be 51% in the coming years. released by the ASSOCHAM. to $6. the Indian online matrimonial sector is worth $230 million. Around 25% of the regular shoppers in India fall in the age group of 18– 25 years and 46% fall in the 26–35 year range.and is expected to All rights . • Worldwide. • Presently.

Challenges Faced by Organizations The various challenges that organizations face include the following: • Understanding the optimal utilization of the Internet for enhanced marketing efficiency • Designing the best possible way to position products and services in the online domain for greater marketing productivity • Creating a value proposition in which the product and the price meet the consumers’ expectations © Oxford University Press 2015. All rights .

All rights .The Online Marketing Mix © Oxford University Press 2015.

E-Product • Value is a sum total of: 1. Individual beliefs of the customer 3. Customer expectations © Oxford University Press 2015. All rights . The product experience 2.

Characteristics of an Online Offer An online offer is typically characterized by the following features: •Renders high levels of convenience for the consumer • Offers good customer service • Saves consumer time and money • Provides an enjoyable shopping experience • Merchandises in the context of product offerings and product information • Provides site design and transaction security © Oxford University Press 2015. All rights .

All rights .Significant Product Dimensions © Oxford University Press 2015.

website characteristics search. All rights .Consumer Segmentation in the Virtual World The following are two different ways of consumer segmentation in the virtual world: • Consumer segmentation using a combination of the three dimensions of consumer need recognition. and consumer pre-purchase Judgment • Consumer segmentation using a combination of the two dimensions of consumer traits and online shopping issues faced by consumers © Oxford University Press 2015.

All rights .Consumer Segmentation: 1 Method st © Oxford University Press 2015.

All rights .Consumer Segment Profiles © Oxford University Press 2015.

and • feeling socially aware while surfing the Internet Consumers and online shopping issues: • Product risk issues • Interactive risk issues • Transaction security issues • Privacy issues © Oxford University Press 2015. All rights .Consumer Segmentation: 2nd Method Consumer traits: • Willingness to take risk • seeking joy in surfing the Internet • saving time while shopping online.

Online Shopping Issues © Oxford University Press 2015. All rights .

All rights .Consumer Segments Profiles © Oxford University Press 2015.

• Micro Marketing: or individualized targeting where a company tailors all or part of the marketing mix to a small number of people. e-marketers can do well with targeting online consumers. All rights . After segmentation of consumers. The Internet is well suited for the following two targeting strategies: • Niche Marketing: where a company selects a target segment and develops one or more marketing mixes to meet the needs of the segment. Targeting Targeting is a very significant discipline in marketing. © Oxford University Press 2015.

• Affiliate programs tend to be expensive as they involve rewarding the referring parties. • High Distribution costs for specific customers as products need to be shipped separately. E-Price Factors affecting costs in the online domain are: • Online Customer Service. • Maintenance and development of websites involve costs. © Oxford University Press 2015. • The internet spells low order processing fee due to self service • The internet world stands for Just-in-time inventories and low overheads. which can be expensive. All rights .

E-Price The Online Value (Pricing Strategies) 1. Dynamic Pricing © Oxford University Press 2015. Fixed Pricing: • Price Leadership • Promotional Pricing 2. All rights .

All rights . © Oxford University Press 2015. E-Promotion Goals of Online Marketing Promotion include: • Driving Prospects to the website • Increasing website registrations • Increasing online transactions • Building consumer engagement and involvement.

Website Characteristics That Affect Online Purchase Decision © Oxford University Press 2015. All rights .