E-Commerce and the Marketing Mix

E-Commerce and the Marketing Mix Dr. Tobias Engelsleben tengelsleben@simon-kucher.com SIMON KUCHER & PARTNERS Strategy & Marketing Consultants Paris Bonn Munich Cambridge/USA Vienna Zurich www.simon-kucher.com SIMON KUCHER & PARTNERS Strategy & Marketing Consultants Consulting in: Regional: • Strategy Projects worldwide • Marketing Focus on Europe and the USA (Projects in 30 countries) • Value-to-Customer and Pricing • E-Commerce • Economic M&A support Size: • Implementation 160 Employees 160 Industries: 128 • Retail • Telecommunications 99 • Automotive, Transport 82 • Chemicals 60 • Services/Finance 51 40 • Energy 30 24 • High Tech (Hardware/Software) 16 20 20 9 • Industrial goods / Mechanical engineering 3 4 5 • Consumer goods 1985 1987 1989 1991 1993 1995 1997 1999 • Pharmaceuticals Visit us on the World Wide Web: http://www.simon-kucher.com SIMON KUCHER & PARTNERS Strategy & Marketing Consultants Bonn: Haydnstrasse 36 - D-53115 Bonn - Tel: ++49/(0)228/98 43-0 - Fax: ++49/(0)228/98 43 120 - bonn@simon-kucher.com Cambridge: One Cambridge Center, Cambridge, MA 01242 USA - Tel: ++1 617 576 2750 - Fax: ++1 617 576 27 51 - cambridge@simon-kucher.com Vienna: Kaerntnerstrasse 7 - A-1010 Vienna - Tel: ++43/(0)1/51 25 74 40 - Fax: ++43/(0)1/51 25 74 411 - wien@simon-kucher.com Munich: Beethovenstrasse 12 - D-80336 Munich - Tel: ++49/(0)89/54 47 93-0 - Fax: ++49/(0)89/54 47 93-50 - muenchen@simon-kucher.com Paris: 12, Avenue Franklin Roosevelt - F-75008 Paris - Tel: ++33/1/56 69 23-90 - Fax: ++ 33/1/56 69 23-99 - paris@simon-kucher.com Zurich: Löwenstraße 69 - CH-8001 Zürich - Tel: ++41-1-226-5040 - Fax: ++41-1-226-5050 - Zurich@simon-kucher SIMON KUCHER & PARTNERS - October 13, 2000 - page 2 SIMON KUCHER & PARTNERS Strategy & Marketing Consultants Simon Kucher & Partners has a unique combination of skills and experience. • Knowledge of numerous industries • Marketing know-how combined with analytical expertise (value to customer, Project results characterised by: conjoint measurement, decision support model, …) • Concrete action recommendations • Far-sighted strategies • Creative concepts • Ability to translate technically complex • Practical solutions solutions into viable market products can be directly implemented • Independent project work • Closeness to the customer SIMON KUCHER & PARTNERS - October 13, 2000 - page 3 E-Commerce and Marketing-Mix What is the impact of E-Commerce on the Marketing Mix? Products/ Price Services Marketing-Mix Place/ Distribution Promotion Consistency within the mix is very important SIMON KUCHER & PARTNERS - October 13, 2000 - page 4 Both the actual product offering and services related to it play a crucial role in Internet The Challenge • The product offering is determined by the needs of the target group and by technical feasibility Product related • Product related services in the Internet differ services fundamentally from bricks and mortar services. The critical factors are often logistics services and telephone support. Additional services can offer the customer additional value. Product Product Complementary Process related • Process related services must be conceived such that services services selection, ordering, payment and delivery are in accordance with the customer’s wishes. • Complementary services supplement the basic offering, thus providing customers with a simple solution to their problems. • Bricks and mortar concepts are not systematically transferable when implementing an Internet business strategy • Products and services must be adapted to meet customers’ expectations • The value proposition or ROI of planned solutions must be evaluated • On the Internet, partnerships are necessary in order to meet customer expectations SIMON KUCHER & PARTNERS - October 13, 2000 - page 5 Internet enables to develop customised products ... and prices The Internet makes it easy for consumers to develop customised products such as made-to-order computers. It also opens the door, however, to pricing customised to the consumer’s willingness to pay.