Price

Price Structures 
Various price strucures canbe used to implentment respective relationships staged. Some of the various pricing strategies are

EDLP = Everyday low pricing

-Cost plus

-competive pricing

-demand pricing

-loss leader

-luxury pricing

– frenzied pricing *stub hub, ebay, pricing that is raised by third party vendors what is called a secondary market.

– English auctions, reversed priced en auctions R.F.P, first price sealed-bid auctions, reverse first price sealed-bid auctions, group buying, exchanges

 

The internet has enhanced dynamic pricing strategies in two ways decreased menu costs and with interactivty.

 

 

  1.  As price increases demand will decrease b/c fewer consumers will have the ability to pay. If Marginal costs equals marginal revenue a firm can sell an additional product at the same price and retain a profit.
  2. A firm would consider fairness when pricing its goods so as to not aggrivate it’scutomers and ruin it’s reputation. The result of a firm practicing price fairness is the sacrifice of short-term profits for long-term realationship with valueable consumers.
  3. the Internet has enhanced opportunities for dynamic pricing strategies with decreased menu Costs allowing prices to b changed eaisliy  and Interactivity which makes it easy for buyers and sellers to interact andnegoicate prices.
  4. A price discrimination strategy works in three ways to get the sale from different customers. First they try get customers to pay what they are willing to pay in this why they can charge the max that cutomers are willing to pay. 2nd to get max willingness plus additional . 3rd to meet the customers willingness to pay by dividing customers into distint segments, charging different prices to different segments. 
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Branding

Branding is what’s left behind when the product is taken out of the equation.

 

Branding needs to create a lasting image a one word impression if you will

Toyota=safe care

Dell=customer service

Coke Cola=refreshing

Ford = tough

These are universal impressions that these brands are known for

 

Good branding makes the brand become synonymous with the product across the board.

Hamburger=McDonalds

Soda=CokeCola

Books = Borders/Amazon

These are brands are thought of with these products

 

Branding is necessary in the internet age.

Because all consumer purchase behavior begins with search … Why should anyone go to Joe’s shop over Circuit City or Dig flash or Scan Disk. The answer is Branding.

 

Branding creates a relationship between the thoughts of consumers and the product.

When you want to buy a toy your 1st stop is toys r Us because of the relationship you had growing up with toys r us for all your toys needs. For Kings and Things to do the same they would need to position themselves as lets say a “kingdom of toys” they would require imagery to support this position a castle with toys falling out the windows. Then they would need to support the brand position with the value of having all major toys and then some.

 

The branding of The do Collection is mysterious and uniquely minded thus as a person with the same personality would be it to is over looked for being too unique a and too much outside of the conventional box.

 

Brands Reduce Clutter:

Think of what you need and one brand comes to mind, go ahead try it

Toilet paper

Toothpaste

Soap

Clothing

Shoes

 

My answer:

Scotts

Crest

Dove

The Do Collection

Zappos

 

See how easy that was? No search needed because defined brands set the template.

 

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Acquisition Marketing – Branding & Online Advertising

  1. What are the special techniques that enterprises can use in their brand-building process on the Web?

1- Interactive sites, Films and comics to reinforce the brand,

Interactive Branding tools

  1. Personalization
  2. Co-Creation of Content
  3. Purchase-Process Streamlining
  4. Customization
  5. Dynamic-Pricing
  6. Brand Community

A/B Testing to find the right trigger and the right target.

Animation and Rich Media, Audio and Video

 

 

  1. A businessperson who is not an Internet expert asks you whether the Internet is useful for branding. What answer would you give and how could you support it with illustrations?

2 – The internet is very useful for branding. It is used to build

Brand Awareness

  • Brand Recognition
  • Brand Recall

Brand Image

  • Favorability
  • Strength
  • Uniqueness

With up to the minute measurability which cuts the cost of non effective campaigns

What more the general population is spending more time online that off. According to a Burst Media survey 2005 60.9% of respondents were spending more time on the internet and according to Baruch College 93% of incoming freshmen checked their Facebook pages 17+ times a day.

 

 

With mobile phones becoming a necessity in the public’s mind and mobile phones becoming more like laptops with faster internet connections more and more young people will develop addictions to being connected and spending more time online. As it is now young people talk to each other near each other online as opposed to face to face. The internet with higher attention gaining and other mediums losing is a very useful, cheaper and measurable.

 

Brand is absolutely critical in an internet age.

It is valued most for responsiveness.

Campaigns will no longer be structured as “here’s money now go”, they will being doing and testing rather than planning.

Results can be found out in as little as a day to a few weeks rather than 6 months.

 

  1. Think about your own Internet use habits. Have you changed your use of other media? Why or why not? How do your own habits fit the media use attitudes and patterns described in the chapter?

3 – Due to my Internet use habits my use of other media has changed drastically.

For one I watch TV close to never.

I visit libraries only to study (however this has to do with my lack of time to sit and read books for leisure or learning outside of school courses).

Newspapers are mainly a boredom reliever on the train as I get the news everyday online from CNN.com or AOL.com. Unlike the television the news I read is on demand. Like newspapers by subject of interest but able to be cross referenced and has the availability of back story.

My behaviors have changed in relation to television because there is nothing worse than being told a story is coming up and I have to sit through 30 minutes of the same commercial breaks to get to the story. Then when the story is on it is rushed through in 30 seconds and embellished for entertainment.

Thus news and entertainment on demand is the way to go for me. Gone are the days that we are forced to sit wasting time to get to what is relevant to us as individuals.

 

 

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Obtaining Customers and Revenue

Advertising model the key is more and varied revenue models that are relevant to your customer base. You have to look at the data coming in and see how best you can analyze it and package it. It must be relevant to the business and the product.

Information products lend themselves to creating the right business model for the right streams of revenue. Information products are commercial products that have data only. Lists, databases, accounts and files; all of which can be sold.
Information rich products are a product that has much information available surround the use and environment; it is ancillary data about a product. What you get when you pay for a product.
On-Star or Sabre verses Tide.com or xbox360.com.

CLV concept is used to find out the net value of a customer. One can profile a customer to find out what makes them profitable and target the same characteristics to get more customers or find out if they are unprofitable. It is cheaper to keep them. Knowing your customers helps you find out how to do that.
Amazon’s use of CLV is a prime example. They know the customer and can speak directly to them with login landing pages based on their interests. College could do this too for recruitment by having login mandatory sites for new recruits that shows information only pertinent to their major and status.

Market research gathers information about
– gets the how and why
Testing looks at what works
– gets the answers on how to get responses.

Testing allows marketers to see what works, this gives them the ability to act accordingly with what they see has gotten them the desirable response.

Data mining and warehousing allows you to see how a person is profitable. The information collected relates back to the customers mind as getting an offer based on what they want. The way to get to know the customer in an internet marketing world is through data.

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Customer Acuquistion and SEO

The era of Can’t is over!

No longer can anyone make a valid arguement that they can’t do or can’t find anything anymore.
Search is a major part of getting things done and as search engines get rid of the clutter out there is will be even for effective without being over efficent.

SEO search engine optimization is the driving force behind the can do drive that will over come us all. We as marketers and We as consumers will be able to get to what we need when we need it at optimal speeds with little effort.

The internet for the 20 something year olds coming up will allow us to move along at a faster pace and get more involved. For one we will not need to start with lists and names. We all can position oursleves to be seen by those looking.

Permission Marketing
Opt-out vs Out-in
Permission is all the craze, who has the right to send mail to anyone.

Opt-out is passively allowing spam, ads, and marketing marterial to enter your box.

Out-in is having to ask for it. Double and Confirmed are deeper levels of acceptance.

It’s all the same until you get to the level of where or not the customer feels like opening the mail or not. Out-out has no garentee outside of ending up in the trash folder. Opt-in has a better chance as the consumer has expressed interest in viewing the mailings in order to stay informed.

Although Opt-out in permission it is un-apparent permission and can be viewed as spam. For that reason is not a good option to go with as many emailboxes have spam filters which lessens the likelihood of the Opt-out email even being seen.

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