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E-MARKETING 5/E
JUDY STRAUSS AND RAYMOND FROST

Part IV: E-Marketing Management

Chapter 10: Product: The Online Offer

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 Chapter 10 Objectives
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 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.

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 The Google Story
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 In 1998, co-founders Brin and Page delivered an

innovative new search strategy that ranked results
on popularity as well as keywords.
 Today, Google performs 7 billion searches a
month, speaks 100 languages and is the most-
visited U.S. Web site.
 Innovative products and strong customer focus are
driving its success and profitability.

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 The Google Story, cont.
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 Generates revenue from several B2B markets:

 Licensing of its search services.
 Sales of advertising to Web advertisers.
 Google pays close attention to user value, keeps
costs low, and delivers eyeballs to advertisers.
 Google’s product mix includes 15 search products,
3 advertising products, 21 applications, 5 enterprise
products, and 2 mobile applications.
 What types of products do you think Google will launch
next?

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 Many Products Capitalize on Internet Properties
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 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.
 Organizations use research to determine what is important to
customers when creating new products.
 The marketing mix and CRM work together to produce
relational and transactional outcomes with consumers.

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 Creating Customer Value Online
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 Customer value = benefits - costs

 Product decisions must be made that deliver
benefits to customers.
 Attributes
 Branding
 Support Services
 Labeling

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 Product Benefits: Attributes
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 Attributes include overall quality and specific features.

 Benefits are the same features from a user perspective.
 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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 Product Benefits: Branding
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 A brand includes a name, symbol, or other

information.
 When a firm registers that information with the U.S.
Patent Office, it becomes a trademark.
 A brand represents a promise or value proposition
to its customers.

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 Brand Equity
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 Brand equity is the intangible value of a brand,

measured in dollars.
 A great brand taps into popular culture and touches
consumers.
 Exhibit 10.3 displays rankings for some of the top
U.S. brands.

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 Highest Value Global Brands
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 Exhibit 10.3

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 Levels of Brand Relationship Intensity
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 Exhibit 10.6 displays 5 levels of brand relationship

intensity.
Highest
intensity Tell others about the brand
Advocacy

Communicate with each other

Community

Communicate with company

Connection between purchases

Identity Display the brand proudly

Is on the list of
Awareness possibilities

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 Branding Decisions for Web Products
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 Firms can use existing brand names or create new

brands on the internet.
 Some firms may use different names offline and
online to avoid risk if the new product or channel
should fail.
 Sports Illustrated created thriveonline.com.
 Wired Magazine changed its online version name to
Hotwired.

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 Creating New Brands for
Internet Marketing
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 Good brand names should:

 Suggest something about the product.
 Differentiate the product from competitors.
 Be capable of legal protection.
 On the internet, a good brand name should be short, memorable,
easy to spell, and translate well into other languages.
 Cobranding occurs when two companies form an alliance and
put their brand names on a product:
 Sports Illustrated co-brands with CNN as CNNSI
 Yahoo! Visa shopping pages
 EarthLink-Sprint
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 Internet Domain Names
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 A URL (Uniform Resource Locator) is a Web site

address.
 Also called an IP address and domain name.
 Domain names contain several levels.
 http:// indicates that the browser should expect data using
the hypertext protocol.
 The second-level is often the name of the company.
 The top-level may be .com or a country name, such as .mx
for Mexico or .uk for the United Kingdom.
 There are at least 40 top level names available
including .biz, .info, .pro, etc.

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 Internet Domain Names, cont.
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 The Internet Corporation for Assigned Names and

Numbers (ICANN) is a nonprofit corporation that
makes decisions about protocol and domain name
assignment, registration, etc.
 GoDaddy and other sites provide domain
registration services at low cost.
 More than 97% of words in the dictionary have
already been registered as domain names.

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 Internet Domain Names, cont.
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 Organizations should purchase related names and

spellings.
 Picking the right domain name can make a huge
difference.
 Directing people correctly to a site.
 Building consistency in marketing communications.

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 Largest Top-Level Domain Names Ex. 10.7
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 Product Benefits: Support Services
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 Customer support is a critical component in the

value proposition.
 Customer service reps help customers with
installation, maintenance, product guarantees, etc.
to increase customer satisfaction.
 CompUSA combines online and offline channels to
increase customer support.

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 Product Benefits: Labeling
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 Labeling has digital equivalents in the online

world.
 Online “labels” provide information about product
usage, features, and installing 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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 Microsoft’s Terms of Use Label
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 Exhibit 10.8

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 Customer Codesign
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 Business and consumer collaboration are possible

on the Internet.
 Software developers often seek customer input
about new products.
 They often allow users to download new products, test
them, and provide feedback.
 Customer interaction has been found to increase
product success.
 Amazon seeks customers’ product reviews.
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 New-Product Strategies: Product Mix
Strategies
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 Many new products, YouTube, Yahoo!, and

Twitter, were introduced by “one-pony” firms.
 Other firms have added products to an already
successful product mix.
 Companies can choose among six categories of
new-product strategies.

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 Product Mix Strategies, cont.
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 Firms will select one of the following strategies,

based on marketing objectives, risk tolerance,
resource availability, etc.
1. Discontinuous innovations are new-to-the-world
products.
2. New-product lines are new products in a different
category for an existing brand name.
3. Additions to existing product lines.
4. Improvements or revisions of existing products.
5. Repositioned products can be targeted to different
markets or promoted for new uses.
6. Me-too lower-cost products.
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mechanical, photocopying, recording, or otherwise, without the prior written
permission of the publisher. Printed in the United States of America.

Copyright © 2009 Pearson Education, Inc.

Publishing as Prentice Hall

©2009 Pearson Education, Inc.

Publishing as Prentice Hall