2. The Strategic eMarketing Mix

3. eProduct Strategy n Always ask… “what business are we in”, “what are our core competencies” n Products can be reengineered for electronic exchange n Search for new value-adding layers in product and service offerings n branding and brand strength are a hot item again! n Cross-selling> product grouping

4. Pop Up Window linked to the Compaq site…. Internet tailoring as well as traditional promotions, relationships with online stores

5. Product Reengineering n Information is a saleable item:

6. Services and Communities

7. Hey Mr. DJ n What’s going on with Napster? n Take 5 minutes and find out what the fight is about….. n What solutions do you see? n Any inevitabilities? n Who are the stakeholders? n What is music worth……and to who?

8. Is Music the Product? n Why not give it away? n When a product is promotion and promotion is the product……. –Are concerts product or promotion? –Are songs product or promotion? n Who stands to gain/lose?

9. ePricing Strategy n Cost restructuring afforded by channel reduction and/or reengineering. –Also channel blow out! Hypermediation n Price is key in many eBusiness models –auctions, reverse bidding, group purchasing power, dynamic pricing. n Distinction between traditional versus electronic channel pricing

12. eDistribution Strategy n Disintermediation –removal of layers of intermediaries between sellers and buyers n Reintermediation –redefining the role of traditional intermediaries by offering value added services –establishing new electronic intermediaries in place of disintermediated traditional intermediaries n Hypermediation

13. Channel Conflict n No shoes at Nike.com? n No jeans at Levis.com? n Compaq…..the $100 million lesson Read the articles listed under today’s topic on the Course Web Site Value Adding From Yours Truly!

14. Pack it up and Move it out... n Strain on physical distribution –smaller lots to millions more locations –huge growth opportunities for distribution companies –distribution ….a service in itself

15. Time for a chat... n What are infomediaries? n What other eDistribution issues should we be concerned about….. OK Andrew….Break Time! Take a 15 minute working break and consider these distribution issues.

16. ePromotion Strategy n Internet and email provide a host of new opportunities for push and pull promotion. n Can be easily and cheaply tailored for micro-marketing promotion. n Don’t forget traditional mediums –mass media promotions have risen dramatically as companies build brand awareness off & on line –www on the cereal box..the bus stop..even your wine cork

18. Big Issues n Privacy n Brand creation and awareness n Cookies and push technologies

19. Strategic eMarketing Market Development Product Development Market Expansion Market Penetration New Product Existing Product New MarketExisting Market

20. Are You Ready to Master Your Internet Channel? n How much does it cost me to provide services that customers could get for themselves over the Internet? n How can I use the information I have about individual customers to make it easier for them to do business with me? n What help can I give customers by using the experience of other customers or the expertise of my employees? n Will I be at a significant disadvantage if my competitors provide these capabilities to customers before I do?

21. Should You Pirate Your Value Chain? n Can I realize significant margins by consolidating parts of the value chain to my customer? n Can I create significant value for customers by reducing the number of entities they have to deal with in the value chain? n What additional skills would I need to develop or acquire to take over the functions of others in my value chain? n Will I be at a competitive disadvantage if someone else moves first to consolidate the value chain?

22. Can You Create New Digital Value n Can I offer additional information or transaction services to my existing customer base? n Can I address the needs of new customer segments by repackaging my current information assets or by creating new business propositions using the Internet? n Can I use my ability to attract customers to generate new sources of revenue, such as advertising or sales of complementary products? n Will my current business be significantly harmed by other companies providing some of the value I currently offer on an a la carte basis?

23. Should I Become a Customer Magnet n Can my industry be divided into logical product, customer, or business-model segments that could evolve into customer magnets? n What services could an industry magnet offer my customers that would make it efficient for them to select and purchase products or services? n What partnerships or alliances could I create to establish the critical mass needed to become an industry magnet? n Will the emergence of a competing industry magnet hurt my relationships with customers or my margins?