Podcast
Questions and Answers
What is the primary purpose of online labels on products?
What is the primary purpose of online labels on products?
Which of the following accurately describes customer co-design in e-marketing?
Which of the following accurately describes customer co-design in e-marketing?
How has the Internet impacted product life cycles?
How has the Internet impacted product life cycles?
What type of product innovation includes entirely new products that have never existed before?
What type of product innovation includes entirely new products that have never existed before?
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Which is an example of a repositioned product?
Which is an example of a repositioned product?
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What strategy involves creating lower-cost products to compete with existing brands?
What strategy involves creating lower-cost products to compete with existing brands?
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Which of the following is NOT a component of new-product strategies for e-marketing?
Which of the following is NOT a component of new-product strategies for e-marketing?
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Which attribute is NOT commonly associated with product benefits in the context of online products?
Which attribute is NOT commonly associated with product benefits in the context of online products?
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What is the primary advantage of using existing brand names on the web?
What is the primary advantage of using existing brand names on the web?
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What is the purpose of creating new brand names for internet marketing?
What is the purpose of creating new brand names for internet marketing?
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Which label characteristic is NOT important for a good online brand name?
Which label characteristic is NOT important for a good online brand name?
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What is one of the key benefits of customer support in online sales?
What is one of the key benefits of customer support in online sales?
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What does cobranding typically involve?
What does cobranding typically involve?
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Why might a firm choose to use different names offline and online?
Why might a firm choose to use different names offline and online?
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Which of the following is NOT considered a benefit users expect from online products?
Which of the following is NOT considered a benefit users expect from online products?
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Which of the following attributes is NOT typically considered a product benefit in the context of online offerings?
Which of the following attributes is NOT typically considered a product benefit in the context of online offerings?
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What characteristic is essential for a brand name specifically created for internet marketing?
What characteristic is essential for a brand name specifically created for internet marketing?
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Which of the following statements about co-branding is TRUE?
Which of the following statements about co-branding is TRUE?
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What is a significant benefit of using established brand names on the web?
What is a significant benefit of using established brand names on the web?
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Which factor is NOT considered critical for effective online labeling?
Which factor is NOT considered critical for effective online labeling?
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What is a key characteristic of the Internet as it relates to fierce competition in product development?
What is a key characteristic of the Internet as it relates to fierce competition in product development?
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Which of the following best describes the term 'discontinuous innovations' in the context of e-marketing?
Which of the following best describes the term 'discontinuous innovations' in the context of e-marketing?
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Which strategy is employed by firms to introduce lower-cost versions of existing products?
Which strategy is employed by firms to introduce lower-cost versions of existing products?
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How has e-marketing changed the interaction between businesses and consumers during product development?
How has e-marketing changed the interaction between businesses and consumers during product development?
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What distinguishes 'additions to existing product lines' from other product strategies?
What distinguishes 'additions to existing product lines' from other product strategies?
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Study Notes
Product Benefits
- Consumers expect various benefits from online products, including effective navigation, quick downloads, clear organization, appealing design, secure transactions, privacy, free information, and user-friendly browsing.
- Product attributes, such as quality and features like color, taste, style, size, and service speed, influence consumer satisfaction.
- The internet significantly enhances customer benefits by enabling digital product presentation, personalization, and expanding the product mix for companies like Amazon.
Branding
- A brand encompasses a name, symbol, or other identifying information, protected as a trademark upon registration.
- Companies may utilize their established brand names online, like Amazon's expansion into music, videos, and software, leveraging existing brand recognition.
- Some companies adopt different online names to minimize risk for new products or channels, as exemplified by Wired Magazine's online version, Hotwired.com.
- New brands for internet marketing should suggest product characteristics, differentiate from competitors, be legally protected, be short, memorable, easy to spell, and translate well.
- Cobranding, like Sports Illustrated and CNN's CNNSI partnership, combines brands to create new offerings.
- Organizations should secure related names and spellings, as illustrated by Coca-Cola owning various variations of its brand name.
Support Services
- Customer support is crucial for value proposition, encompassing pre- and post-purchase assistance.
- Customer service representatives aid with installation, maintenance, guarantees, warranties, and other services to enhance customer satisfaction.
- Click-and-brick organizations blend online and offline services, maximizing customer experience and minimizing downtime.
Labeling
- Online labeling provides product information and usage instructions, replacing traditional physical labels.
- Online labels also present legal information regarding copyright and usage permissions, as seen on Microsoft's website.
E-Marketing Enhanced Product Development
- Developers must integrate various digital mediums, including text, graphics, video, and audio, and leverage new internet delivery systems.
- Front-end customer service integration with back-end data collection is essential.
Customer Co-design
- The internet enables collaboration between businesses and consumers.
- Software developers often seek customer input for new product ideas.
- Many firms allow customer participation in website creation processes.
Internet Properties Spawn Opportunities
- The internet creates new and unconventional product opportunities, such as GPS.
- Increased information accessibility leads to fierce competition, product imitation, and rapid product lifecycle.
- Firms are compelled to innovate quickly, releasing new products within days or hours instead of months.
New-Product Strategies for E-Marketing
- Discontinuous Innovations: New-to-the-world products like software, shopping agents, search engines, social networking platforms.
- New-Product Lines: Utilizing an existing brand name to introduce products in different categories, such as Windows Media Player versus Real Player.
- Additions to Existing Product Lines: Expanding a product line with variations in flavor, size, or other aspects, like USA Today's online edition.
- Improvements to Existing Product Lines: Introducing "new and improved" versions of existing products, such as the iPhone.
- Repositioned Products: Reframing existing products for different markets or users, exemplified by Yahoo's transformation from a search engine to a portal and eventually a Life Engine.
- Me-Too Lower-Cost Products: Competing with existing brands through price advantage, representing a low-risk strategy, such as EarthNet's price strategy against AOL.
Product Benefits
- Effective web navigation, quick download speeds, clear site organization, attractive and useful site design, secure transactions, privacy, free information or services, and user-friendly Web browsing and e-mail reading are all expected benefits by consumers.
- Attributes include overall quality and specific features such as color, taste, style, size, and speed of service.
- The internet increases customer benefits by enabling media, music, software, and other digital products to be presented on the Web and allowing for user personalization.
- Branding is important as it includes a name, symbol, or other information that becomes a trademark when registered with the Patent Office.
- Firms can use existing brand names on the web (e.g., Amazon) or create new brands for internet marketing (e.g., Hotwired.com).
- Effective online brand names suggest something about the product, differentiate the product from competitors, are capable of legal protection, are short, memorable, easy to spell, and translate well into other languages.
- Cobranding involves two companies forming an alliance and using their respective brand names on a product (e.g., CNNSI).
- Organizations should purchase related names and spellings to protect their brand (e.g., Coca-Cola owns cocacola.com, coca-cola.com, and coke.com).
- Support services are vital to the value proposition, including customer support during and after purchases.
- Customer service representatives assist with installation, maintenance, product guarantees, service warranties, etc. to enhance satisfaction.
- Click-and-brick organizations combine online and offline service to maximize customer experience and minimize downtime and frustrations.
- Labeling has digital equivalents on websites, providing information about product usage and features, as well as legal information about copyright permissions (e.g., Microsoft).
E-Marketing Enhanced Product Development
- Developers must combine digital text, graphics, video, and audio and utilize new internet delivery systems.
- They must also integrate front-end customer service operations with back-end data collection.
- Customer co-design is facilitated by the internet, enabling collaboration between businesses and consumers.
- Software developers often seek customer input for new products, and many firms allow customers to participate in website creation.
- The internet creates new and unusual product opportunities (e.g., GPS).
- The internet is the great information equalizer, resulting in fierce competition, lots of product imitation, and short product life cycles.
- Firms must create, develop, and release innovations in a matter of days or hours instead of months.
New-Product Strategies for E-Marketing
- Discontinuous innovations are new-to-the-world products like software, shopping agents, search engines, social networking, and platforms.
- New-product lines involve taking an existing brand name and creating products in a completely different category (e.g., Windows Media Player vs. Real Player).
- Additions to existing product lines involve adding a new flavor, size, or variation to a current product line (e.g., The USA Today - slightly different online version).
- Improvements to existing product lines refer to "new and improved" versions of existing products (e.g., iPhone).
- Repositioned products are current products targeted to different markets or promoted for new users (e.g., Yahoo - from search engine to portal to Life Engine).
- Me-too lower-cost products are introduced to compete with existing brands through price advantages, representing a low-risk strategy (e.g., EarthNet - dropping prices against AOL).
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Description
Explore the dynamics of online product benefits and branding strategies in this quiz. Discover how navigation, design, and brand recognition impact consumer satisfaction and market presence. Test your knowledge on attributes that define successful online products and branding tactics.
