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The Internet and the marketing mix
http://damianofamily.50megs.com/images/se_chart-web.gif

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The 4Ps and the 4Cs

Product

Price

Place

Promotion

Customer needs

and wants

Customer

convenience

Communications

with

company

Cost

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The elements of the marketing mix

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Product

The element of the marketing mix that involvesresearching customers needs and developing

appropriate products

Core product The fundamental features of the product that meet the

users needs.

Extended product

Additional features and benefits beyond the core

product.

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Product

Options for varying core product

Options for changing the extended product

Conducting research online

Velocity of new product development

Velocity of new product diffusion

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Adding digital value to the customers

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By offering additional information or transaction services

to existing customer base
http://images.google.co.in/imgres?imgurl=http://www.sitatravel.com/MAPI/images/heading_egypt.jpg&imgrefurl=http://www.sitatravel.com/MAPI/egypt_dec08.htm&usg=__5wmcsMaoaAnnh4kfP7gNbwJNnbE=&h=150&w=684&sz=39&hl=en&start=8&um=1&tbnid=r7ql7Pt_qppasM:&tbnh=30&tbnw=139&prev=/images%3Fq%3Dsitatravel.com%26hl%3Den%26sa%3DX%26um%3D1http://images.google.co.in/imgres?imgurl=http://www.sitatravel.com/images/logos/sitatourscomblack.gif&imgrefurl=http://www.sitatravel.com/specials.htm&usg=__sWlqSJpseDl5WpIJAR-WN37SWtY=&h=74&w=257&sz=2&hl=en&start=12&um=1&tbnid=nU5UGe-eR71gdM:&tbnh=32&tbnw=112&prev=/images%3Fq%3Dsitatravel.com%26hl%3Den%26sa%3DX%26um%3D1http://images.google.co.in/imgres?imgurl=http://www.sitatravel.com/MAPI/images/heading_egypt.jpg&imgrefurl=http://www.sitatravel.com/MAPI/egypt_dec08.htm&usg=__5wmcsMaoaAnnh4kfP7gNbwJNnbE=&h=150&w=684&sz=39&hl=en&start=8&um=1&tbnid=r7ql7Pt_qppasM:&tbnh=30&tbnw=139&prev=/images%3Fq%3Dsitatravel.com%26hl%3Den%26sa%3DX%26um%3D1

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By addressing needs of new customer segments by

repacking current info or by creating new business

proposition using internet

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By attracting customers to generate new sources of

revenue or sales of complementary products

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Options for changing the extended product

Additional elements beyond the core
http://images.google.co.in/imgres?imgurl=http://course.fed.cuhk.edu.hk/s040643/EDD5169H/Computer%2520Hardware.gif&imgrefurl=http://course.fed.cuhk.edu.hk/s040643/EDD5169H/Student%2520Page%2520Homepage.htm&usg=__0McqntvIFDdNrI28UX8LapM08k0=&h=409&w=511&sz=66&hl=en&start=3&um=1&tbnid=EBSP2vO441mOLM:&tbnh=105&tbnw=131&prev=/images%3Fq%3Dcomputer%2Bhardware%26hl%3Den%26um%3D1

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Extended product options

Add-on services gift wrapping @ Amazon

Endorsements

Awards Testimonies

Customer lists

Customer comments

Warranties Guarantees

Money back offers

Customer service (see people, process and physical evidence)

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C

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Conducting research online

Customers perceptions of products/services

Online focus groups Online surveyCustomer feedback Web logs

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http://images.google.co.in/imgres?imgurl=http://www.coolavenues.com/images/jim-campus.jpg&imgrefurl=http://www.coolavenues.com/mbasp/jim-dean-1.php&usg=__3lxLXcAy9vxSmtyu0emMd_kEe-Q=&h=260&w=391&sz=39&hl=en&start=1&um=1&tbnid=7RXLXFGAZQcTzM:&tbnh=82&tbnw=123&prev=/images%3Fq%3Djim%2Bnoida%26hl%3Den%26um%3D1

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http://images.google.co.in/imgres?imgurl=http://www.coolavenues.com/images/jim-campus.jpg&imgrefurl=http://www.coolavenues.com/mbasp/jim-dean-1.php&usg=__3lxLXcAy9vxSmtyu0emMd_kEe-Q=&h=260&w=391&sz=39&hl=en&start=1&um=1&tbnid=7RXLXFGAZQcTzM:&tbnh=82&tbnw=123&prev=/images%3Fq%3Djim%2Bnoida%26hl%3Den%26um%3D1http://images.google.co.in/imgres?imgurl=http://www.coolavenues.com/images/jim-campus.jpg&imgrefurl=http://www.coolavenues.com/mbasp/jim-dean-1.php&usg=__3lxLXcAy9vxSmtyu0emMd_kEe-Q=&h=260&w=391&sz=39&hl=en&start=1&um=1&tbnid=7RXLXFGAZQcTzM:&tbnh=82&tbnw=123&prev=/images%3Fq%3Djim%2Bnoida%26hl%3Den%26um%3D1

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Velocity of new product development

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Velocity of new product diffusion
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Price
http://images.google.co.in/imgres?imgurl=http://www.retailerdaily.com/uploads/tiny-bites.jpg&imgrefurl=http://www.retailerdaily.com/entry/43545/pizza-hut-strikes-back/&usg=__UNZqpMYDwUq7T2xvjlzEN7wcCPM=&h=590&w=1005&sz=118&hl=en&start=80&um=1&tbnid=DIuL-E8A0xoaaM:&tbnh=87&tbnw=149&prev=/images%3Fq%3Ddominos%2Binternet%2Bmenu%26ndsp%3D18%26hl%3Den%26sa%3DN%26start%3D72%26um%3D1http://images.google.co.in/imgres?imgurl=http://www.retailerdaily.com/uploads/tiny-bites.jpg&imgrefurl=http://www.retailerdaily.com/entry/43545/pizza-hut-strikes-back/&usg=__UNZqpMYDwUq7T2xvjlzEN7wcCPM=&h=590&w=1005&sz=118&hl=en&start=80&um=1&tbnid=DIuL-E8A0xoaaM:&tbnh=87&tbnw=149&prev=/images%3Fq%3Ddominos%2Binternet%2Bmenu%26ndsp%3D18%26hl%3Den%26sa%3DN%26start%3D72%26um%3D1

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P i

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Price

Increased price transparency &

differential pricing

Downward pressure on price

New pricing approaches

Alternative pricing structures

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Increased price transparency & differential

pricing

D d i

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Downward pressure on price

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Forward auction

are electronic auctions, which can be used by sellers to sell their

items to many potential buyers

Items are commonly placed at a special site for auction

(e.g. eBay.com).

Buyers can continuously bid for the items they are interested in.

Eventually the highest bidder wins the item.

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reverse auction

is a type of auction in which

the roles of buyers andsellers are reversed

In a reverse auction, sellerscompete to obtain business,

and prices typically decrease

over time.
http://images.google.co.in/imgres?imgurl=http://www.indiamarkets.com/imo/images_new/imologo.gif&imgrefurl=http://www.indiamarkets.com/imo/industry/industry.asp%3Fdisplay_content_link%3D0%26search_link%3D0&usg=__G755R3TWCrVGQBcPTdhoXbC4lrY=&h=50&w=183&sz=4&hl=en&start=33&um=1&tbnid=BCfu0F5TdBfBsM:&tbnh=28&tbnw=102&prev=/images%3Fq%3Dindiamarkets.com%26ndsp%3D18%26hl%3Den%26sa%3DN%26start%3D18%26um%3D1

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Alternative pricing

structures

Payment per use

Renal at a fixed cost/month

Bundling

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Place

Where from to be purchased online

Company site

Third party site
http://images.google.co.in/imgres?imgurl=http://www.edenbee.com/assets/0000/3828/nokia-6300-most-popular-mobile-phone.jpg&imgrefurl=http://apps.facebook.com/edenbee/&usg=__FXydrCgwW58pUeE7kJZMhBnxow8=&h=481&w=393&sz=31&hl=en&start=18&um=1&tbnid=N0pE2NWvTLHrjM:&tbnh=129&tbnw=105&prev=/images%3Fq%3Dmobile%26hl%3Den%26um%3D1

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Place

Place of purchase

New channel structures

Channel conflicts

Virtual organizations

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place of purchase

Seller-controlled sites

are those that are the main site of the supplier company which aree-commerce enabled.
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place of purchase

Seller-oriented sites

are controlled by third parties, but are representing the seller ratherthan providing a full range of options.
http://images.google.co.in/imgres?imgurl=http://www.utalkmarketing.com/Pages/dbImage.aspx%3Fid%3D236&imgrefurl=http://www.utalkmarketing.com/Pages/Article.aspx%3FArticleID%3D2563%26Title%3DTop_5_E-mail_Marketing_Newsletters&usg=__JAQRytOYsjE9sMpLiB2TkMJ_JXU=&h=561&w=640&sz=128&hl=en&start=7&um=1&tbnid=F_dNBT4RqpDPcM:&tbnh=120&tbnw=137&prev=/images%3Fq%3Dopodo.com%26hl%3Den%26sa%3DN%26um%3D1http://images.google.co.in/imgres?imgurl=http://www.utalkmarketing.com/Pages/dbImage.aspx%3Fid%3D236&imgrefurl=http://www.utalkmarketing.com/Pages/Article.aspx%3FArticleID%3D2563%26Title%3DTop_5_E-mail_Marketing_Newsletters&usg=__JAQRytOYsjE9sMpLiB2TkMJ_JXU=&h=561&w=640&sz=128&hl=en&start=7&um=1&tbnid=F_dNBT4RqpDPcM:&tbnh=120&tbnw=137&prev=/images%3Fq%3Dopodo.com%26hl%3Den%26sa%3DN%26um%3D1

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place of purchase Neutral sites

are independent evaluator intermediaries that enable price and

product comparison and will result in the purchase being fulfilled on

the target site.
http://images.google.co.in/imgres?imgurl=http://www.securitysoftwarezone.com/user_files/images/vladuz.png&imgrefurl=http://www.securitysoftwarezone.com/romanian-hacker-targeting-ebay-review276-1.html&usg=__uNB22YPTaSZRb0UHxEe0L0QFxEw=&h=366&w=481&sz=100&hl=en&start=6&um=1&tbnid=owtkH_5Xb9pXmM:&tbnh=98&tbnw=129&prev=/images%3Fq%3Debay%26hl%3Den%26um%3D1http://images.google.co.in/imgres?imgurl=http://www.securitysoftwarezone.com/user_files/images/vladuz.png&imgrefurl=http://www.securitysoftwarezone.com/romanian-hacker-targeting-ebay-review276-1.html&usg=__uNB22YPTaSZRb0UHxEe0L0QFxEw=&h=366&w=481&sz=100&hl=en&start=6&um=1&tbnid=owtkH_5Xb9pXmM:&tbnh=98&tbnw=129&prev=/images%3Fq%3Debay%26hl%3Den%26um%3D1

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Evans and Wurster view of place

Reach.

This is the potential audience of the e-commerce site. Reach can beincreased by moving from a single site to representation with a

large number of different intermediaries.

Richness.This is the depth or detail of information which is both collected about

the customer and provided to the customer. This is related to theproduct element of the mix.

Affiliation.This refers to whose interest the selling organisation represents

consumers or suppliers. This particularly applies to retailers. Itsuggests that customers will favour retailers who provide them with

the richest information on comparing competitive products.

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N h l t t

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New channel structures

Disintermediation

Reintermediation

Countermediation
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Channel conflicts
http://images.google.co.in/imgres?imgurl=http://www.cmog.org/uploadedImages/Exhibitions/Past_Exhibitions/perfume_avon_100065_lg.jpg&imgrefurl=http://www.cmog.org/dynamic.aspx%3Fid%3D1278&usg=__crrC2yrnQCicNMfrzJU2TimHsDY=&h=500&w=399&sz=202&hl=en&start=4&um=1&tbnid=2YKybSlKbx8suM:&tbnh=130&tbnw=104&prev=/images%3Fq%3Davon%2Bcosmetics%26hl%3Den%26sa%3DN%26um%3D1http://images.google.co.in/imgres?imgurl=http://www.cmog.org/uploadedImages/Exhibitions/Past_Exhibitions/perfume_avon_100065_lg.jpg&imgrefurl=http://www.cmog.org/dynamic.aspx%3Fid%3D1278&usg=__crrC2yrnQCicNMfrzJU2TimHsDY=&h=500&w=399&sz=202&hl=en&start=4&um=1&tbnid=2YKybSlKbx8suM:&tbnh=130&tbnw=104&prev=/images%3Fq%3Davon%2Bcosmetics%26hl%3Den%26sa%3DN%26um%3D1http://images.google.co.in/imgres?imgurl=http://i18.photobucket.com/albums/b128/maruli786/britanica1.jpg&imgrefurl=http://www.kaskus.us/showthread.php%3Ft%3D1915101&usg=__wz7LfyJOcvtoWKKnr75o0Doi7SA=&h=303&w=401&sz=50&hl=en&start=2&um=1&tbnid=59iqHW-efJZfzM:&tbnh=94&tbnw=124&prev=/images%3Fq%3Dbritanica%26hl%3Den%26um%3D1

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Forms of channel

A communication channelonly.

A distribution channel tointermediaries

.

A direct sales channel tocustomers.

Any combination of theabove.
http://images.google.co.in/imgres?imgurl=http://i18.photobucket.com/albums/b128/maruli786/britanica1.jpg&imgrefurl=http://www.kaskus.us/showthread.php%3Ft%3D1915101&usg=__wz7LfyJOcvtoWKKnr75o0Doi7SA=&h=303&w=401&sz=50&hl=en&start=2&um=1&tbnid=59iqHW-efJZfzM:&tbnh=94&tbnw=124&prev=/images%3Fq%3Dbritanica%26hl%3Den%26um%3D1

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Strategic Options

No internet sales

Internet sales by resellerInternet sales by

manufacturer

Internet sales by all

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Virtual organizations

Autoresponders. These automatically generate a response when ail i ti b it li f
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company e-mails an organisation, or submits an online form.

E-mail notification. Automatically generated by a companys systems toupdate customers on the status of their order, for example, order received,

item now in stock, order dispatched.

Call-back facility. Customers fill in their phone number on a form andspecify a convenient time to be contacted. Dialling from a representative inthe call centre occurs automatically at the appointed time and the companypays which is popular.

Frequently Asked Questions (FAQ). For these, the art is in compiling andcategorising the questions so customers can easily find (a) the questionand (b) a helpful answer.

On-site search engines. These help customers find what theyre looking forquickly and are popular when available. Site maps are a related feature.

.

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