Kotler defines differentiation as the process of adding meaningful and valued differences to
distinguish the companys offering from the competition.
o Product line differentiation , e.g. almost limitless
What Are They?
Distribution Channels make products and services conveniently available to customers when,
where, and how they want them.
You Need To Know
How to count the number of channels a manufacturer is using.
Whether a channe
E-marketing Past, Present, and Future
The Past: Web 1.0
Web 1.0 connected people to networks.
Started in 1969
Grew more quickly than any other medium (tv, radio)
When 500 internet firms shut their doors in 2002
Plateau of profitability
The Internet for Distribution
Online Channel Intermediaries
Wholesalers buy products from the manufacturer and resell them to retailers.
Retailers buy products from manufacturers or wholesalers.
o Digital delivered online
o Direct manufacturer direct to
E-Marketing Segmentation and Targeting
Marketing segmentation is the process of
grouping individuals or businesses, according
to use, consumption, or benefits of a product or
Market targeting is the process of selecting
market segments that are m
Assessing a Channel Strategy
Six Factors That Make up a Channel Strategy Assessment
1. What is the priority given to distribution?
How important is the P Place to the company you are assessing?
This is a very broad question where you simply assess genera
Customer Relationship Management (CRM)
CRM is the process of acquiring, servicing, retaining, and building long-term
relationships with customers.
The benefits of CRM include:
o Increased revenue from better targeting acquisition.
o Increased w
10 Metrics Every E-Commerce Site Should Monitor
1. New visitor conversion rate
Most retailers rarely differentiate between their new and return visitor conversion
By isolating the new visitor conversion rate, youll be able to see a clearer pictur
Characteristics of Services
Intangibility of Services
1. Services are much less tangible than physical products. Style, visible features,
and performance characteristics are not available to the service producer to nearly the
same degree as they are to th
Supply Chain and Logistics
Logistics or Physical Distribution (PD)
Planning, implementing, and controlling the
physical flows of materials and final goods
from points of origin to points of use to meet
customers needs at a profit.
Supply Chain Management
Price: The Online Value
Varying prices for individual customers
The idea that buyers and sellers can view
competitive prices for items sold online
Allows buyers to name their price and have
sellers try t
Product: The Online Offer
Maximize Online Benefits
1. Product attributes
o Includes overall product or service quality and specific features
2. Brand image
3. Customer service
o Customer support is a critical
Positioning is the process of creating a desired image (differentiating) for a company and its
products in the minds of a chosen user segment.
Bases & Strategies for Positioning
Product or service attribute
o May include features such as size
Online Pricing Strategies
aka menu pricing.
Everyone pays the same price, commonly used by many brick-and-mortar firms.
Two common fixed price strategies are:
1. Price leadership
Lowest priced product in a particular category
Target Market Definition
o Age, income, occupation, education, household makeup, etc.
o Activities, interests opinions
o Where your target market is located
o Benefits sought, product use
Consumer Behavior Online
Social and cultural trends brought about by the internet
Consumers trust one another more than marketers.
Information overload overwhelms consumers.
Multitasking speeds up normal processes and lowers a