Relationship stages ( awareness, exploration , commitment, dissolution)
Categories of levers
Product
• Can be defined as both tangible goods and intangible services generally created for the purpose of transaction.
• Two general types of products for which the levers of product development differ – physical and services.
• The Internet is changing some accepted limitations of service-based offerings such as intangibility, simultaneity, heterogeneity, and perishability.
• Three components to overall value proposition: core benefit, basic product and augmented product.
• The 2Is allow a company to learn more about its customer, personalize a product to meet customer preferences, and offer CRM tools to provide more value for customers and cut costs for product sellers.
• Websites which require customers to register to use the site have access to numerous tools to interact with the user as an individual.
How?Two primary techniques:
• Deploying the product development levers that are appropriate for the existing relationship and
• Emphasizing the elements of the value proposition that are most relevant at a given stage of the relationship.
Brand
• According to the American Marketing Association, a brand is a “name, term, sign, symbol, or design, or a combination of them intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of the competition”.
How have the 2Is Affected Branding?
The 2Is of Internet-based communication help to establish and maintain brand meaning in several essential ways:
• Message timing
• Message frequency
• Message content
Price
Key variables of basic demand-curve pricing:
• Price
• Substitute Offerings/ Prices
• Complementary Offerings/ Prices
• Income
• Market Size
• Taste
• Marginal Revenue
• Marginal Cost
strategies
• Cost Plus
• Target Profit Growth
• Target-Return Pricing
• Prestige Pricing
• Price as a Sign of Quality
• Cyclical Promotional Pricing (Hi-Lo)
• Everyday Low Pricing
• Fairness in Pricing
• Promotional Low-Cost Pricing
• Dynamic Pricing is one of the most significant contributions the Internet and the 2Is have made to pricing strategy.
• The Internet has enhanced dynamic pricing in two ways:
– Decreased Menu Costs
– Interactivity
Advanced strategies
• Price Discrimination
– first-degree, second-degree and third-degree
• Volume Discount Pricing
• Two-Part Pricing
• Bundling
• Price Discrimination Over Time
• Frenzy Pricing
Community
There are three broad types of Communities, differing by their foundation of shared interests.
- Information-driven communities
- Activity-driven communities
- Commonality-driven communities
• Cost Benefits
– Reduced Customer Service Costs
– Reduced Customer Acquisition Costs
– Reduced Costs from Decreased Product Flaws and Marketing Mistakes
– Reduced Marketing Costs
• Revenue Benefits
– Increased Customer Segmentation and Customization
– Increased Branding
– Deepened Customer Relationships
Communication
® Goal of marketing and communication is to convey relevant messages to the right consumers at the right time.
® Synergy between messages is integrated communications.
® Traditional and interactive marketing methods are converging.
® Marketing communications, which includes all the points of contact that a firm has with its customers, can be grouped into four categories:
- Mass offline
- Personal offline
- Mass online
- Personal online
Distribution
• A distribution channel is the system of organizations involved in the process of making a product or service available for consumption or use.
• Marketing channels therefore facilitate the exchange of goods and services between buyers and sellers.
The Internet:
• Is a substitute for other forms of communication.
• Has radically changed buyer-seller relationships.
• Has changed the customer shopping experience.
• Has increased the power of consumers.
• Disintermediation
• A strategy that involves the elimination of a channel intermediary.
• Internet has become a driving force for disintermediation
• Overall result is positive because channel works more closely to create value for customers
• Awareness
• Number of Intermediaries
• Number of Channels/ Intermediary Type
• Exploration/ Expansion
• Degree of Channel Integration
• Number of Channels/ Intermediary Type
• Commitment
• Degree of Channel Integration
• Intermediary Type
• Number of Channels
• Intermediary Functions and Responsibilities
• Dissolution
• Elimination of Channel Types
• Reduction in the Number of Intermediaries
• Reduction in Channel Integration