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Chapter 9:
Product: The Online Offer
1. What are the arguments for and against using existing brand names on the
Web?
2. List six new-product strategy categories and provide Internet examples of each.
The six new-product strategies are:
Discontinuous innovations — new-to–the-world products never seen before like the
first Web authoring software, cell phone/PDA combination, shopping agent, and
search engine.
New product lines — when firms take an existing brand name and create new
products in a completely different category like when Microsoft introduced the
Internet Explorer Web browser to compete against Netscape and the Windows media
player against Real Player.
Additions to existing product lines – occur when organizations add a new flavor,
size, or other variation to a current product line. Examples include GTE’s SuperPages
3. Why is value tied to the entire product experience?
The entire product experience provides value to the customer; is defined by the
customer; involves customer expectations; and applies at all price levels. It starts with
4. What are some important criteria for Internet domain naming?
Organizations spend a lot of time and money developing powerful, unique brand
names for strong brand equity. Using the company trademark or one of its brand
5. How does labeling work on the Internet?
Product labels identify brand names, sponsoring firms, and product ingredients, and
6. What techniques can e-marketers employ to enhance new-product
development?
The move from atoms to bits adds complexity to online product offers. Developers
must now combine digital text, graphics, video, and audio, and use new Internet
7. Why do e-marketers need to forecast revenue, expenses, ROI, and payout for
new products under consideration?
Marketers generally forecast the expected product revenue over time, deduct
marketing and other expenses, and generate a return on investment estimate for new
Discussion Questions
8. The Google Story: Describe Google’s strategy for creating value: attributes,
9. The Google story: Why do you think Google’s primary revenue comes from
advertising? What other products do you think Google could monetize?
10. The Google Story: What similarities do you see in Exhibit 9.4 that makes for
great brands? Do you have other ideas?
11. Under what circumstances would it make sense to take an existing brand name
online? When would it not make sense?
Companies creating new products for online sale must decide whether to use existing
brand names, create new brand names for new products, or whether to cobrand.
12. Given the list of online booksellers in this chapter, what name would you pick
for a new bookstore selling both new and used books online?
13. How would you use social media to build the brand of your university?
14. What discontinuous innovations have you seen since this book was written?
What’s next in your opinion?
15. Why do e-marketers often have difficulty estimating the revenues, costs, and
payout or ROI of a new product under development?
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Marketers generally forecast the expected product revenue over time, deduct