Archive for the ‘marketing’ Category

Marketing: Product needs thought

Monday, December 1st, 2008

Product is the last in our series. Some may argue that product should be first; however, for those considering e-commerce product should be considered last. The reason is that many people are looking for ways to generate revenue through the Internet. These people will need to take inventory of their individual skill sets and resources.

Products vary from in-house produced items to resale items. Would an automobile be considered an in-house item or a resale item? If you said resale you would be correct, because the automobile manufacturer sells the product to a dealer for resale. Many people in e-commerce will be involved with resale, so they will need to consider the other three principles of marketing before settling on a product.

Product volume needs to be considered. Do you have a product that is geared towards high volume sales, repeat sales or more towards a one time purchase? High volume sales generally result from low cost items or staples, like food and greeting cards. High volume sales can represent repeat sales; however, if your product has intense competition the repeat sales may be to your competitor.

Inventory needs to be considered with product. By inventory we are not only talking about what you have in your warehouse or stockroom, but also supply chain. You may have a great price on laptop computers; however, if your battery supplier goes on strike or cannot keep up with your sales you are going to lose sales. You want to stay away from products that have a complex supply chain while just starting out.

When we consider the other three principles of marketing: price, promotion and placement, product will tend to fall into line. We will tend to want to market products that we have heard about or used ourselves due to the comfort level and user acceptance. However, I have seen products that were re-marketed after not gaining user acceptance that performed quite well. Enjoy selecting your product(s) and remember marketing is about people.

Mike Kniaziewicz, MIS

Marketing: Placement is where you look

Monday, December 1st, 2008

Placement is where your product is located within demographic sectors. You would not want to sell snowmobiles in a warm weather state, unless you are targeting the demographic that travels from warm weather to colder, snow covered areas. You need to examine your product to determine what provided you with the greatest access to your markets. Product placement is your next step in the marketing mix.

Consider product placement in conjunction to computer games. Computer games are not as easy to place as you might think. Yes, you might want to place your product on youth sites if your game has intense graphics and quick interaction. However, if your game is more geared towards a slower, more tactical demographic you may want to place the product on a web site geared more towards older people.

E-commerce enables product placement in nearly every arena. You need to determine the demographic your product pertains too in order to place the product appropriately. You will also need to concern yourself with Intellectual Property Rights if your placing a software or literature product. E-commerce lends itself to IP theft, so you may want to restrict product placement to certain locations.

Product placement also considers how the product complements or contrasts other products. You would not want to place antiques or ornaments with computer equipment unless you are placing a TSR80. It goes back to the old adage of placing like or complementing items together. The ability to index and separate web pages and categories makes product placement very easy, since you can create an entire theme for each page on a web site.

Product placement is where your product is located in regard to your targeted demographic. Consider who will want to use your product and place the product on the appropriate web site. A nicety with e-commerce is the ability to place products on distinct web pages and place them independent of other products on your web site. Product placement is not difficult once you have determined your target market.

Mike Kniaziewicz, MIS