單元6 Translated

Machine Translated by Google
Course Title: Internet Marketing
Unit 6 Title: Network Product Decisions
Course length: 195
minutes Instructor: Xu Huiyin

content topic
• Understand the current state of product structure in online
marketing • Explore the nature of the product • Understand what
products are suitable for sale on the Internet • Deep dive into
the evolution of e-commerce after Covid-19
2
learning target
• The knowledge, skills and attitudes that learners can acquire after reading this
unit are as follows: • Basic knowledge of the product structure, product nature,
products sold on the Internet and the evolution of e-commerce after COVID-19
• Possess key skills to learn product structure, product essence, products

sold on the Internet, and the evolution of e-commerce after COVID-19. •
Apply product-related knowledge to online marketing
3
study advice
Stage 1: Watch teaching slides, lecture materials Stage 2: Watch teachers explain teaching materials
online
ÿTeaching slides (PPT): downloaded to the computer, you can study ÿCourse explanation (streaming video and audio): The
offline. Time: 30 minutes ÿ Teaching material handout (PDF): Print it out online reading teacher explains the content of the lecture notes.
and draw the key points by yourself, and mark the unclear points. Time: Time: 1 hour
30 minutes
Advanced and Extended Learning

Stage 3: After-class practice and reflection
ÿSelf-test (SWF): Self-check whether you understand the content of the

ÿExtended reading: Provide learning resources for learners to advance
textbook. Time: 5 minutes. ÿSelf-reflection: Review the course content and
their learning. ÿRelevant research and application of supplementary
think about its application in the workplace. Time: 10 minutes.
teaching materials-journals
4
6-1 Current Situation of Product Structure in Internet Marketing
• advertised as "everything, everything for sale, nothing strange"
• It's true that there are few things you can't buy online.
Although everything can be sold on the Internet, are all
products really suitable for selling on the Internet? Are any
products selling well?
5
• Information Policy Council: The e-commerce market in 2015 exceeded one trillion yuan
• In 2015, the output value of Taiwan's e-commerce market was about 106.9
billion yuan, of which the B2C (business-to-consumer) e-commerce market
was 613.8 billion yuan. The C2C (consumer-to-consumer) market size is
393.1 billion yuan.
• It is estimated that in 2016, the size of Taiwan's e-commerce market is expected to grow
by 12% compared with 2015, reaching 1 trillion,127.7 billion yuan. As for 2017, it is
expected to grow by another 11% to 1,251.5 billion yuan.

6
7
Taiwan's e-commerce output value (billion)
• MIC pointed out that in the past, the business model of e-commerce was relatively
"Rational" is mostly to strengthen the efficient delivery speed, or invest in
payment innovation, and earlier is to compare the price of competition and so
on. • In 2015, with the rise of "e-commerce of sensibility", the key to its success
will be to create value, not to compare prices; not only to operate websites, but
also to operate members; and operators will also focus on temperature rather than spee
• E-commerce is expected to evolve in the direction of curatorial, community, shopping
guide and fashion. 8

video supplement
• Everything is sold, nothing is surprising. "Retail Transformation" is a

business war! https://www.youtube.com/watch?v=AFOnywyA66I
• It's not surprising that everything is sold. How do college students buy
Taobao? https://www.youtube.com/watch?v=KqBLM1Sl2Fs
• It's not surprising that everything is sold? Lu Wangpai actually launched the "Fighting on behalf of the quarrel"
service. If you don't win, you won't be charged! https://www.youtube.com/watch?v=FD1fLcp9B0I
• Precautions and regulations for selling food online! Before starting an e-

commerce business https://www.youtube.com/watch?v=l4y7SJ78PBA&t=172s
9
Overview of Taiwan E-commerce
• There are three main modes of e-commerce distribution in Taiwan: B2B like
shopping malls , B2B2C like shopping streets, and C2C like auctions. • In
addition, there are so-called vertical e-commerce and group buying. Vertical e-
commerce such as: Lativ, Xiaosan Daily, Liangxing Electronics...; group buying
network such as: gomaji, groupon, 17life.
• In other regions with relatively good e-commerce development, large e-
commerce companies usually have only two modes: B2C and C2C in Europe,
America and mainland China; B2C and B2B2C in Japan. 10

11
Taiwan e-commerce company attributes

Proportion of product categories in the six major online shopping platforms in Taiwan
• EZprice price comparison network analysis 2015 Q2 six major online shopping platform
commodity category analysis, the commodity is divided into popular, life department store,
3C electronics, books, food, daily necessities, home appliances and others, a total of 8
categories to organize.
• Popular category accounts for the largest proportion: it is the first and strongest category
of the platform. Shopping on momo shopping.com, Yahoo shopping mall, GoHappy
shopping website and UDN. 58.36%, this category has the most intense competition
among the 8 categories.
12
13
• Life department store category: It is the second major category of main products
on most platforms. PChome ranks first in the product mix of life department stores
and 3C electronics.
• "Other" category: Among the department store brand halls, GoHappy's sogo hall, Yuanbai
hall and other products have entered a large number this year, which has a growth rate
of more than 15 times compared with 2014, and the proportion has increased significantly.
• Books from blogs are still far ahead this year, accounting for more than 90% of the total.
Although other products account for a relatively small proportion, they clearly create the
first platform impression of exclusive categories of products for consumers.

14
Important figures for e-commerce operations in Taiwan
• E-commerce is a kind of data management science. When we have accumulated huge consumer
data and product information of major e-commerce companies, we can develop various evaluation
values according to different needs, and through cross- comparison, we can analyze the products
that meet consumers' shopping requirements. Demand or information about the shopping habits
of consumers that e-commerce companies want to know.
• The most important thing is of course "turnover", followed by profit. • Assist e-
commerce merchants to observe business conditions with important operational equations
15
• The smaller the number of items, the higher the traffic cost
• The size of the traffic depends on the number of commodities. The fewer commodities,
the higher the traffic cost, because you can only use a small amount of commodities to
compete with others.
• The smoother the shopping process, the higher the conversion rate
• The UI (User Interface) and UX (User Experience) of the website are the so-
called shopping process. The smoother the shopping process, the higher the
probability of USER paying , that is, the higher the conversion rate.
• Commodity structure determines your Target, and also determines the unit price
• Have a goal to know where to go! This sentence simply derives the importance of
targeting Target, targeting key customers, and knowing who you want to sell to?
16
6-2 The essence of the product
• Product, which is the subject of exchange as defined in the marketing definition.
• Product narrowly refers to the functional or physical characteristics of goods or services. Broadly refer to
A combination of physical and abstract features (such as brands) that help meet consumer
needs .
• American Marketing Association (AMA) defines a group of attributes

that can be traded or used, including features, functions, benefits
and uses, usually both tangible and intangible, may be ideas,
objects, services or Any combination of the three can be traded to
meet individual and organizational goals.
17
product level
Figure 2 Five levels of products
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Five levels of products
• Core benefit layer: The basic utility and benefits of products provided to consumers are also the
benefits and services that consumers really want to buy. Consumers buy a product not to own
the product entity, but to obtain utility and benefits that can satisfy their own needs. For example,
the core benefit of a washing machine is that it allows consumers to wash clothes in a convenient,
labor-saving and time-saving manner.
• Entity Product Layer: Also known as the General Product Layer. The core function of the product
needs to be realized by a certain entity, that is, the basic form of the product, mainly including the
structure and appearance of the product.
• Expected product layer: a set of attributes and conditions that consumers expect when purchasing
a product. For example, for those who buy a washing machine, they expect the machine to be
able to clean clothes with ease and effort, without damaging the clothes, with low noise during
19
laundry, and easy access. Drainage, beautiful appearance, safe and reliable use, etc.
• Additional product layer: Additional services and benefits included in the product, mainly including transportation, installation,
commissioning, maintenance, product assurance, spare parts supply, and technical personnel training. Additional
products come from a comprehensive and multi-level in-depth study of consumer needs , requiring marketers to face up
to the overall consumption system of consumers, but at the same time they must pay attention to whether consumers
are willing to bear the increased costs due to the addition of additional products The problem.
• Potential product layer: heralds all possible additions and modifications to the product eventually
Change.
20
Product classification
Convenience items, favorite items, optional items, special items
• According to the two aspects of the consumer's effort and perceived risk when purchasing the
product , the product is divided into:
Convenience
preferred product
Shopping
special
twenty one
Convenience
• Consumers will often buy items that they want to own immediately and that
don't require a lot of money and time. include:
• Impulse: Products that are not expected to be purchased in advance, often purchased on an impromptu
basis after arriving at the store , such as negatives, snacks, magazines, chewing gum, candy, small
toys, etc.
• Daily necessities: Daily necessities that are purchased on a regular basis, such as toothbrushes,
toothpaste, soap, toilet paper, newspapers, oil, gasoline, milk, bread, sugar and salt
• Emergency Items: Products purchased for urgent needs, such as umbrellas during rainy days,
candles and flashlights during power outages, and medical supplies such as red syrup sold at
convenience stores near hospitals
• The level of effort and risk is minimal, and consumers don't spend too much money
and time on convenience items, and they don't perceive significant risks when
making choices. twenty two
preferred product
• Has low purchasing effort, low self-involvement, but high brand bias
good feature.
• When choosing some daily necessities, there is a preference for a specific brand, even if the
difference between the brands may not be large, such products need to strengthen the
marketing, so that consumers have some established impressions of the product and become
the brand loyal customers, such as the product image of "good coffee is to share with good
friends" .
• The level of effort and risk is higher, and the main difference between convenience products
and convenience products is the perceived risk of purchasing such products. Generally,
consumers' perceived risk is increased through the efforts of marketers on brands and
advertisements (eg, consumers are attracted by advertisements or have a preference for the
twenty three
brand, and they have a preference for the taste and image of Coca-Cola).
Shopping
• Consumers will compare the product characteristics of competing brands, such as price,
quality, form, color, etc. before purchasing. Compared with convenience products, the
unit price of purchased products is usually more expensive, and the number of vendors
selling them is also high. a bit less.
• Purchases with high homogeneity: The properties and functions of the products themselves
are very similar , such as washing machines, refrigerators, dishwashers, clothes dryers,
TVs, cheap video recorders, fans, washing machines, etc. • Shopping with high
heterogeneity: Consumers believe that products are different in nature, such as computers,
mobile phones, high-end luggage, clothing, and furniture.
twenty four
special
• This kind of consumer goods has great characteristics and has its own
unique brand, so that consumers are willing to pay special attention to
buying this brand or product , and are less willing to replace it with other
brands. Therefore, consumers will be more loyal and will spend a lot of
time and money to carefully compare, select and then buy. • For example,
brand-name products, certain products with strong characteristics, restaurants

with unique tastes , luxury cars, brand-name clothing or healthy food.
25
The difference between tangible products and intangible services
• There are some differences between intangible services and tangible products. Services
have four characteristics:
intangibility
indivisibility
variability
Perishability
26
• Intangibility: The service industry provides non-materialized products such as feeling,
process, efficiency, rhythm , attitude, quality, judgment, knowledge... etc .
• Indivisible: In the Supply Chain, the production of tangible products can be independent
due to the acquisition of land or the relocation of enterprises (for example: to set up
factories in the mainland to produce specific parts, and then ship them back to Taiwan,
Or the computer industry will specialize OEM,
ODM to different parts of the world) , but the intangible products of the service industry
cannot be divided. The car mechanic of the maintenance factory cannot ask you to
disassemble the parts in this factory, replenish the oil in that factory, in Taipei Tangtan,
27
in Tainan Platen....
• Variability: Take beauty, hotel, telecommunications, and intermediaries in the service
industry as examples. The professions and processes provided by enterprises are not the
same, and even the same type of enterprises in different regions and different enterprises
are not exactly the same , unlike the electrical industry and other tangible product
manufacturing industries , the upstream and downstream or domestic and foreign products
are roughly the same. • Perishability: There is no "stock" in the service industry, and its
professionalism may be unsustainable due to the loss of specific talents, such as
employees with special contacts in the enterprise, employees who can control the overall
process, and upstream procurement. Skilled employees.... may cause the company to fail
to provide "goods" as good as before because of their departure. In short , the quality of
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production and sales is greater than the quality of tangible products.
video supplement
• Creative Products - TANYA HEATH PARIS

https://www.youtube.com/watch?v=Kj2o0Bnyi60
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6-3 Products suitable for sale on the Internet
• The ambiguity of product purchase decision-
making tasks • Commodities and informational products with
traditional cost structure • Products suitable for online sales from the perspective of
consumer behavior •Products suitable for online sales from the perspective of business costs
product
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The Ambiguity of the Product Purchase Decision Task
• Task equivocality refers to whether the information required by a task itself

is known when communicating and making decisions, and whether the
communicator clearly knows what information to search for to make
judgments and decisions.
• If information is available, a single, unambiguous optimal solution can be
made , indicating that the task is less ambiguous.
• The task is highly ambiguous if a single, unambiguous optimal solution
cannot be made even with the information available.

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Commodities with traditional cost structure
• Traditionally, products are made from raw materials and inputs through
the conversion of production processes , so in addition to fixed costs,
there will also be inevitable variable costs when manufacturing
products .
• So when the production quantity is larger, although the average variable cost does
not change , the average fixed cost will be lower and lower, that is, the total cost
will be lower and lower. Therefore, in the traditional production logic, the
advantage of lower total cost can be obtained by relying on mass production to
reduce the average fixed cost .

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informational products
• Informational products refer to products that have no fixed concrete
components and exist in digital form.
• The manufacturing cost of the first version is extremely high, and the remanufacturing
cost is extremely low. When the number of production increases, the average total cost
will not only get lower and lower, but will "close to zero".
33
Products suitable for sale

online from a consumer behavioral perspective
• Good for low-ambiguity items
• Figurative options are great
• In general, from the perspective of consumer behavior,

"representational" and "shopping items" with "low task ambiguity" will
be the most suitable products for sale on the Internet, followed by
"low ambiguity" "Representational", "special items"; "services" and
"convenience items" with "low task ambiguity " would also be quite34suitab
Products suitable for online sales
from the perspective of business operating costs
• Informational goods are great for
• In general, whether it is a tangible product or an intangible service, as long

as it has the characteristics of an information product , it is very suitable
for online sales in terms of operating costs . But it is worth mentioning
that if the intangible services in the physical environment are converted
to online services, the traditional cost structure will usually be converted
to the cost structure of information products, which will be the best choice
for the industry. .
35
video supplement
• Harvard experts reveal what Google, Facebook, Microsoft didn't let you
know! Digital scam? https://www.youtube.com/watch?v=MLeZpzxcNO0
• How to pick a product, describe the

product https://www.youtube.com/watch?v=E1ZvrGqNR5w
• What if I sell other people's products?

https://www.youtube.com/watch?v=J0EQhy1nGJ0
• How can office workers earn passive income through e-commerce? How to start an e-
commerce business? https://www.youtube.com/watch?v=H9W8mk-OhAQ
36
6-4 E-commerce Evolution After COVID-19
• In the three years from 2020 to 2023, global e-commerce will further grow by 56%,
and the total market value will exceed US$6 trillion. At the same time, with the
impact of the new crown pneumonia this time, many consumers who have not
used online shopping have also tried their first online shopping. Just as SARS in
2003 drove the rapid growth of Alibaba and JD.com, we can foresee that under
the influence of this global pandemic (Pandemic) , the growth of e-commerce will
far exceed expectations, not only for e-commerce It will bring direct profit benefits
to the retailer, and at the same time, it will encourage the existing retailers to focus
more on the operation of e-commerce.
Quoted from https://oosga.com/pillars/ecommerce/ 37

• Although these numbers and trends seem to depict a bright future for e-commerce,
the market is always zero-sum. In the world, the number of e-commerce websites
is as high as tens of millions, but only 650,000 have an annual turnover of more
than 1,000 US dollars , and very few make profits through e-commerce. In such
an environment, even if the e-commerce market grows rapidly, the growth space
for the market will still belong to the existing market leaders, and those who can
put the customer experience at the core and extremely at every touch point of the
customer journey. related brands.

Cross-border e-commerce: the cornerstone of the borderless trade market
• From the perspective of the entire Asia-Pacific market, although the e-commerce market
maintains a huge growth, it is the fastest growing sales channel in the overall retail industry.
However, its true growth potential has not been fully liberated. The key to liberating this
growth lies in the development of "cross-border e-commerce".
• As entry costs gradually decrease and more and more challenges are overcome by
technology , this cross-border e- commerce category, which accounts for only 20% of total
global B2C e-commerce sales , is now being replaced by traditional e-commerce in many
advanced countries It will grow at a double rate and will maintain a growth rate of 27% until
2026, from a global total market value of 780 billion US dollars to nearly 5 trillion US dollars.

Development Strategies of Electronic Commerce

• Strategy 1. Think about consumption in terms of customer journey, rather than blindly optimizing the
conversion rate of the funnel
• In e-commerce operations, what we most often see is that the team regards
the entire customer journey as a big funnel, and each link in the big funnel is
then cut into small funnels and continuously optimized in different links .
There's nothing wrong with doing this, but it 's assuming that all customer
groups, customer motivations, and customer situations at the time are exactly
the same, and optimize based on that. But the truth is that the journeys of
different customers will be very different, and if the way of interacting with
them is standardized , it will lose relevance among many customers.

• However, this is not to say that the application of "funnel" is incorrect. Marketing funnel or
sales funnel is definitely a crucial existence in e-commerce, but this is only limited to the
fact that this channel is a must for every consumer This is the case with the road. For
example, when the consumer logs in as a user, or the checkout process after the
consumer puts the product in the shopping cart, in these links , we can basically determine
that the consumer's motivation is the same as other factors. It also allows teams to
assess the friction of a process when they are really assessing its friction, not the actions
of consumers based on other factors.
• Compared with optimizing from the perspective of funnels, when operating e-commerce, it
is better for operators to start from the perspective of customer decision-making journey,
and establish different scrum teams (3~8 people) according to different journeys carefully
selected ), and these scrum teams not only each group has design, development,
analysis, operations, and marketing covering all business functions that interact with
customers, but these groups also need decision makers to give more execution flexibility
to strengthen e-commerce Operational agility.

• Strategy 2. Provide consumers with personalized experience through multiple channels
• E-commerce, that is, a website, the biggest difference from brick-and-mortar

retail is that the website can be easily redecorated, which is a part of the
speed of execution of the strategy we mentioned at the beginning. Various
data tracked by online channels, the team can even make this website
present differently in front of everyone, that is, to provide users with a
personalized experience. • A survey conducted by a North American team
found that 40% of consumers experienced a personalised experience that

made the final purchase amount exceed their original expectations. At the
same time, 49% of all consumers who experienced a personalised
experience purchased A product that was not originally intended to be
purchased. The importance of a personalised experience is clear, yet the
same report also states that an average of 71% of consumers are frustrated
by an impersonal experience while shopping.

• Actually, such a high number is not surprising, in a

A Forrester survey on personalization found that 53 percent of digital channel
experience experts said they lack the technology and tools to provide consumers
with personalized experiences. However, now that countless technologies are open
source, the subscription economy is mature, and the cost of technology acquisition
is extremely low, it is not difficult to provide consumers with a personalized experience
from start to finish.
• First we can cut the whole customer journey into different points, and then at these
points, the team can think about how to make the experience more personal.
Suppose a common journey pattern is that consumers enter the e-commerce
homepage, search for the product they intend to buy through the search button,
and finally find the right product and buy it.

• First on the homepage, we can infer the category that the consumer may be most interested
in based on the historical data of the consumer, and put the category on the big Banner on
the homepage. The CTR of their e-commerce platform is 26%, and the conversion rate is as
high as 18%; at the same time, the search results are also a good point of personalization.
Although the algorithm of finding information is often complicated, the industry can also use
the same This opportunity to display similar products that consumers have interacted with in
the search results. A study from Dortmund University of Technology found that when the
team matched the search results with the personalized results based on past interaction
records When the weights are mixed together, it will be able to achieve the best results and
effectively reduce the customer churn rate of e-commerce. Finally, after entering the product
page, the team can also insert a product related to the consumer itself in the product
recommended by the recommendation engine, so as to increase the desire of consumers to
add purchases.
• But not only that, in digital channels, we can provide some personalization elements at almost
all link points, whether it is email marketing , social media remarketing, or geographically
based , gender, and behavioral data are designed to make customers extremely relevant at
every touchpoint they interact with e-commerce.

• Strategy 3. Track every link, every action of consumers

• As we mentioned earlier, rather than looking at the benefits of different touchpoints
horizontally , it is better to use a vertical perspective to understand how different
customer groups interact with the brand and the customer journey Understand to
plan the corresponding strategy.
• To do this, however, the industry must be able to track each link point and link different
link points to each other, including social media, paid channels, web data, email data,
and CRM data. Finally, after integrating these data into a business intelligence
software, we can further make different assumptions, analyze, and obtain insights
from it.

• Strategy 4. Foster a culture of experimentation and give teams more execution
elasticity
• We have highlighted a sentence earlier, that is, the difference between e-commerce and
brick-and-mortar retail will be the key to success in planning an e-commerce strategy.
The difference is speed, agility, and resilience in operations, and finally, the ease of
access to data, and the correct and clean characteristics of the data itself.
• The sum of these features is the core ability of running an e-commerce business, that is,
the ability to test . Another way to say it is to analyze the data to gain insights, build
hypotheses, test it over and over again to confirm the hypotheses, and finally scale the
ability to deploy strategically. Taking a practical case as an example, suppose the team
believes that the shopping cart can effectively improve the conversion rate after some
design adjustments after analysis, then the next step is to confirm this assumption
through repeated A/B tests. If established, the scope of the test can be continuously
expanded, even scaled to the entire web page.

• However, the traditional organizational structure is difficult to do such a test. For example,
the ability of analysis is not linked with marketing, and the marketing proposal may
also be difficult to promote to the implementation stage of development and design,
which ultimately slows down the efficiency of the entire process. This is why, as we
mentioned at the beginning, it is critical to bring an agile operating structure into the
organization. To truly unlock the benefits that testing can bring to e-commerce,
organizations must also cultivate a culture that is good at and, more importantly,
courageous in testing. • One of the mantras of Amazon founder Jeff Bezos is "Amazon's
success is built on the tests we do every year, every month, every week, and even
every day ." And a better example is Booking.com, without Thousands of tests are
being done all the time, and the total number of tests per year is as high as 25,000 .
These continuous optimizations that Booking has made through testing have enabled
them to maintain a very significant competitive advantage even with the world's top
technology and analytical capabilities.

video supplement
• Taiwanese buy 200 billion online a year! Is the product too good to buy, or is the merchant too
good to sell? https://www.youtube.com/watch?v=Yk7Fi0oqIpY
• Taiwan's leading fresh food e-commerce company has an annual revenue of over 700 million
https://www.youtube.com/watch?v=WY43H17qDhs
• The rise of the epidemic prevention home economy and the online shopping
platform to seize business opportunities https://www.youtube.com/watch?v=D7fb7mHv82k&t=3s
• Everyone who succeeds in e-commerce business must do the first step right! Choose the right target
group to sell the right product https://www.youtube.com/watch?v=6GBPNHnI7l0 • Do you make
money from online auction e-commerce? Six things you must know if you want to increase your passive
income! https://www.youtube.com/watch?v=uyOr_f-Un28
49
important
6-5 Summary of learning points
• Current status of product

structure in online marketing •
Taiwan's important figures for e-
commerce operations • Essence
of products • Five levels of
products • Product classification
Development Strategy
50
• Current status of product structure in online marketing • The
e-commerce market exceeded one trillion yuan in 2015
• In the past, the business model of e-commerce was more "rational", most of which were to
enhance efficient delivery speed, or invest in payment innovation, and earlier it was
competition Compare prices and more
• In 2015, the rise of "e-commerce of sensibility", the key to its success will be to create value,
not to compare prices; not only to operate websites, but also to operate members; and operators
will also focus on temperature rather than speed
51
• Important figures for e-commerce operations in
Taiwan • The most important thing is of course "turnover", followed by profit
• The smaller the number of products, the higher the traffic
cost • The smoother the shopping process, the higher the
conversion rate • The product structure determines your Target and the unit price
52
• The essence of the product
• The subject of exchange referred to in the marketing
definition • Narrowly refers to the functional or physical characteristics of goods or services. Broadly refers
to the combination of physical and abstract characteristics (such as brands) that can help meet
consumer needs
• A group of attributes that can be traded or used, including features, functions, benefits, and uses ,
usually both tangible and intangible, and may be ideas, objects, services, or any combination of the
three, which can be obtained through transactions . Meeting individual and organizational goals
53
• Five levels of products

• Core benefit layer: the basic utility and benefits of products provided to consumers are the benefits and services
that consumers really want to buy
• Entity product layer: The core function of the product needs to be realized by a certain entity, that is, the basic
form of the product , mainly including the structural appearance of the product, etc.
• Expected product layer: the set of attributes and conditions that consumers expect when purchasing a product
• Additional product layer: Additional services and benefits included in the product, including delivery, installation,
commissioning, maintenance, product warranty, spare parts supply, technician training, etc.
• Potential product layer: heralds all possible additions and changes to the product eventually
54
• Classification of products
• Convenience: items that consumers buy frequently, that they want to have immediately, and that can be obtained
without spending a lot of money and time
• Preferences: Low purchase effort, low self-involvement, but high brand preference
characteristic
• Shopping items: Consumers will compare the product characteristics of competing brands, such as comparing
Repurchase for price, quality, form, color, etc.
• Special products: with great characteristics and unique brands, consumers are willing to pay special attention to
buying the brand or product, and are less willing to replace it with other brands
55
• Products suitable for sale on the Internet
• Ambiguity in the product purchase decision task
• Low ambiguity: the information is available, the single best solution without ambiguity can be made
• High ambiguity: Even when information is available, a single, unambiguous optimal solution cannot be made
Program
• Commodities and informational products with traditional cost structures
• There are fixed costs and inevitable variable costs in product manufacturing. The greater the production quantity, the greater the
The total cost will be lower and lower
• Informative products are products that exist in digital form. The first version is very expensive to manufacture, and then the
The cost is extremely low, and the average total cost will "close to zero" as the number of production increases
• Products suitable for sale online from a consumer behavioral perspective
• From the point of view of the operator's operating costs, products suitable for online sales 56
• E-commerce evolution post-COVID-19

• In the three years from 2020 to 2023, global e-commerce will further grow by 56%, and the total market value will exceed US$6
trillion
• With the impact of the new crown pneumonia this time, many consumers who have not used online shopping have also tried their
first online shopping
• The number of global e-commerce websites is as high as tens of millions, and the annual turnover exceeds one thousand US dollars.
There are 650,000, and even fewer profit from e-commerce
• The e-commerce market is growing rapidly, and the room for growth will ultimately still belong to the existing market leaders and
those brands that can put the customer experience at the core and are extremely relevant at every touch point of the customer
journey
• Cross-border e-commerce: the cornerstone of the borderless trade market, will maintain a growth
rate of 27% until 2026, from a total global market value of US$780 billion to nearly US$5 trillion
57
• Development strategy of e-commerce
• Strategy 1. Think about consumption in terms of customer journey, rather than blindly optimizing
the conversion rate of the funnel
• Strategy 2. Provide consumers with personalized experience through multiple channels
• Strategy 3. Track every link, every consumer action • Strategy 4. Cultivate a culture of
experimentation and give teams more execution
elasticity
58

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Course Title: Internet Marketing

Unit 6 Title: Network Product Decisions

Course length: 195

minutes Instructor: Xu Huiyin

• Understand the current state of product structure in online

marketing • Explore the nature of the product • Understand what

the evolution of e-commerce after Covid-19

• Possess key skills to learn product structure, product essence, products

Apply product-related knowledge to online marketing

Advanced and Extended Learning

ÿSelf-test (SWF): Self-check whether you understand the content of the

6-1 Current Situation of Product Structure in Internet Marketing

• advertised as "everything, everything for sale, nothing strange"

6-1 Current Situation of Product Structure in Internet Marketing

expected to grow by another 11% to 1,251.5 billion yuan.

6-1 Current Situation of Product Structure in Internet Marketing

"Rational" is mostly to strengthen the efficient delivery speed, or invest in

payment innovation, and earlier is to compare the price of competition and so

• E-commerce is expected to evolve in the direction of curatorial, community, shopping

guide and fashion. 8

• Everything is sold, nothing is surprising. "Retail Transformation" is a

service. If you don't win, you won't be charged! https://www.youtube.com/watch?v=FD1fLcp9B0I

• Precautions and regulations for selling food online! Before starting an e-

Overview of Taiwan E-commerce

network such as: gomaji, groupon, 17life.

• In other regions with relatively good e-commerce development, large e-

America and mainland China; B2C and B2B2C in Japan. 10

Taiwan e-commerce company attributes

of the platform. Shopping on momo shopping.com, Yahoo shopping mall, GoHappy

among the 8 categories.

first platform impression of exclusive categories of products for consumers.

Important figures for e-commerce operations in Taiwan

of consumers that e-commerce companies want to know.

• The most important thing is of course "turnover", followed by profit. • Assist e-

commerce merchants to observe business conditions with important operational equations

compete with others.

6-2 The essence of the product

• Product, which is the subject of exchange as defined in the marketing definition.

• American Marketing Association (AMA) defines a group of attributes

Figure 2 Five levels of products

Five levels of products

Convenience items, favorite items, optional items, special items

product , the product is divided into:

convenience stores near hospitals

selling them is also high. a bit less.

mobile phones, high-end luggage, clothing, and furniture.

brand-name products, certain products with strong characteristics, restaurants

The difference between tangible products and intangible services

have four characteristics:

• Intangibility: The service industry provides non-materialized products such as feeling,

process, efficiency, rhythm , attitude, quality, judgment, knowledge... etc .

Or the computer industry will specialize OEM,

• Variability: Take beauty, hotel, telecommunications, and intermediaries in the service

professionalism may be unsustainable due to the loss of specific talents, such as

• Creative Products - TANYA HEATH PARIS

6-3 Products suitable for sale on the Internet

• The ambiguity of product purchase decision-

making tasks • Commodities and informational products with

The Ambiguity of the Product Purchase Decision Task

• Task equivocality refers to whether the information required by a task itself

• If information is available, a single, unambiguous optimal solution can be

made , indicating that the task is less ambiguous.