Last Minute Guides to E-Marketing

This article from Channel Web suggests that Microsoft opening an online store and selling products directly to customers can cause conflict of channels of distribution. The argument (pro Microsoft) is that Microsoft is taking advantage of increasing its sales without affecting its distributors, since there are so many product choices for consumers that they will still need distributors to help them choose the right solutions for them. Afterall, as the article states, “Do you think that bankruptcy of Circuit City and CompUSA had anything to do with the idea that Microsoft needs to go at it alone to reach the end customer?”

A lesson to learn: The idea of using multiple channels is to increase sales and effectiveness of distributing our product offerings, not causing a conflict of channels. As for Microsoft case, we will just have to see if this becomes a problem, now don’t we? What do you think?

For more details, please visit: http://www.crn.com/software/212101096

Anthony D.

According to Newsday’s article, “Merchants were saying Thanksgiving Day has become a huge online shopping day for them,” said Amanda Pires, PayPal marketing director. Consumers are using the internet to research and do comparison shopping in preparation for Black Friday shopping. On the other hand, retailers take these as opportunities to make a sale. For example, retailers are not only offering huge discounts, but free shipping is crucial in making the sale.

This illustrates the internet as a distribution channel that facilitates the exchange of goods and services between buyers and sellers. Customers are not only staying up late in the morning for Black Friday shopping, but also online shopping is becoming more mainstream. Will online shopping replaces the tradition of staying up late for Black Friday shopping?

For more details, please visit: http://www.newsday.com/services/newspaper/printedition/sunday/lilife/ny-a5935509nov23,0,4689938.story

Anthony D.

As the headline states, according to today’s article in Business 24/7, PC Magazine is going to discontinue its print version and will be available online only. The Chief forecasted that the print version in 2009 will not be profitable due to the decrease in advertising all over the world and rising costs. He also said that most of the profits and revenues comes from the digital format. This magazine is not the only one that is going digital; other magazines such as Bulletin of the Atomic Scientists, Christian Science Monitor, and CosmoGirl are closing their print version.

That’s right! This means customers will not be able to buy anymore PC Magazine at Walgreens and other stores. Customers will have to start getting used to reading them online. In academic term, this means some magazines are going through the dissolution stage, when firms are eliminating some of the channel types. In PC Magazine case, going digital only is most likely to maximize efficiency as distribution costs are reduced without affecting their profits and revenues so much. How effective this will be, however, is another issue as we will have to find out what the customers will say. What do you think?

For more details, please visit: http://www.business24-7.ae/articles/2008/11/pages/11232008_6b09666fd2c846e4b20b50b3280baed3.aspx

Anthony D.

Today’s discussion was about the differences, advantages and disadvantages of online media versus offline media. We also talked about some key marketing concepts, which I thought it was interesting and I can basically summarize them as STP. The lecture ended with principles for designing marketspace matrix.

Online media vs. offline:

• interactivity
• individualism
• community and relationships

STP (segmentation, targeting, and positioning)

Principles for marketspace matrix design:

Which lever should be used?

• choose levers to effect a change
• determine which levers have the most leverage
• consider barriers to advancement
• consider the medium’s effect on desired behavior
• level of involvement matters
• understand consumer learning trends
• credibility of the channel matters
• the choice of levers must be consistent with positioning choice
• the medium can be the message – or the product
• matrix design must be adaptive

Anthony D.

Today’s discussion was about Branding. We also did a group exercise:

Armani Exchange:

Fashion forward with disposable income

Sexy cop and 300 Soldiers costumes

Cool, sexy, sophisticated, trendy, hot

Anthony D.

Distribution: of

• information
• funds
• materials

Decreases coordination cost

Potential channel conflict

Anthony D.

Today’s discussion continues from the last class about product and new topic about community aspect of the marketspace matrix. The term community was also defined.

Int Product levers:

• presales support to customers
• flexible fulfillment options
• post sales service
• customer care
• product bundle
• complementary product
• increased product availability

Community: a set of interwoven relationships built upon shared interests, which satisfies members’ needs otherwise unattainable individually

Exhibit 10.1 Community Criteria

Transfer of values incommunities triangle

Anthony D.

Today’s discussion was about communication and product aspects of the marketspace matrix. The term product was defined, although, I pretty know this one already after 3 years in business school. The communication aspect, I thought, is interesting because it is similar to what was taught in advertising classes. Then again, advertising is communication.

Integrated Communication:

• convey relevant messages to the right customers at  the right time
• synergy
• converging traditional and interactive marketing methods

Communication process:

• target
• objective
• media plan
• creating message
• execute campaign
• evaluate effectiveness

Product definition:

• tangible goods and intangible services
• 2 general types of products for which the levers of product development differ – physical and services
• service – intangible, simultaneity, heterogeneity, perishability
• 3 components to overall value proposition = core benefit, basic product, augmented product

Augmented product development levers:

• customer service programs (postsales support, customer care & CRM)
• loyalty programs and privileges
• availabiltiy of complementary products
• upgrades
• enabling community
• additional functionality
• fulfillment capabilities

How products enables customer relationships – 2 primary techniques:

• deploying the product development levers that are appropriate for the existing relationship
• emphasizing the elements of the value proposition that are most relevant at a given stage of the relationship

Anthony D.