27. ‘The marketing mix developed as part of annual planning is no longer a valid concept in the Internet era.

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Discuss.
The statement that the marketing mix developed as part of annual planning is no longer a valid concept in the Internet era is debatable. The traditional marketing mix,
often referred to as the 4Ps (Product, Price, Place, Promotion), has been a cornerstone of marketing strategy for decades. However, the advent of the internet and
digital technologies has significantly altered the way businesses operate and interact with their customers. This has led some to question the continued relevance of the
traditional marketing mix in the internet era.
Argument for using Marekting mix in digital era : The core principles of understanding customer needs, offering valuable products or services, pricing them
competitively, and promoting them effectively remain crucial for success in any business environment, including the digital realm.
Arguemnt against the use of Marketing mix in internet era : The internet has empowered customers with access to vast information, making them more
discerning.Some argue that the traditional marketing mix is too company-centric and does not adequately address customer needs and preferences. In the digital age,
factors like customer experience, engagement, and online reputation have become critical to success.
In conclusion, while annual planning for the marketing mix is not entirely obsolete, it must be adapted to the digital era by incorporating flexibility, continuous
evaluation, and real-time data-driven decision-making.

Question: 33. How does the Internet impact an organization’s options for core and extended (augmented)
product? (Chapter 5)
Internet-related product decisions can be use fully divided into decisions affecting the core product and the extended product. The core product refers to the main
product purchased by the consumer to fulfil their needs, while the extended or augmented product refers to additional services and benefits that are built around the
core of the product. The main implications of the Internet for the product element of the mix are: 1 options for varying the core product; 2 options for offering digital
products; 3 options for changing the extended product; 4 conducting research online; 5 speed of new product development; 6 speed of new product diffusion.
Impact on Core Product Options 1.New Digital Products –such as e-books, streaming music.2.Repackaging and Market Expansion –For instance, a bookstore
may offer digital audiobooks or create a DVD rental service. 3. Revenue Generation through Digital Services –such as Lastminute.com selling travel-related
advertisements. 4. Mass Customization –as seen with fashion brands like ASOS, which provides a ‘catwalk view’ before purchase. 5. Product Bundling –Amazon,
for example, offers discounts on digital versions of physical books. 6. Price Transparency – Online price comparison websites, such as Comparethemarket.com,
Impact on Extended (Augmented) Product Options 1.Enhanced Customer Experience –such as warranties, money-back guarantees2. Customer Interaction and
Reviews – Companies can build credibility through customer endorsements, testimonials, and product ratings. 3. Virtual Assistance and Personalization as seen in
banks like First Direct. 4,Freemium and Premium Offerings –such as Amazon Web Services providing limited free offers before transitioning users to paid plans. 5.
Efficient Research and Product Development – Online focus groups, surveys, and customer feedback forums enable businesses to gather insights for innovation. 6.
Faster Product Development and Diffusion –. Google, for instance, frequently tests and refines products based on user feedback.

29. Does ‘Place’ have any meaning for marketers in the global marketplace enabled by the Internet?
Traditionally, The Place variable of the marketing mix refers to how the product is distributed to customers. In an online context, navigating from one site to another,
the scope of Place is less clear since Place also relates to Promotion and Partner ships. But, the concept of Place in the marketing mix still holds significant meaning
for marketers in the global marketplace enabled by the Internet, though its implications have evolved.
Key Ways ‘Place’ Remains Relevant in a Digital Global Marketplace:
 Place of Purchase: Despite the borderless nature of the Internet, marketers must consider logistics, fulfillment, and localization to optimize their online sales
channels. Selling digital products (e.g., music, e-books, and software) eliminates physical distribution concerns, but marketers must still ensure an efficient and user-
friendly transaction process. Companies like Apple iTunes and Amazon Kindle thrive due to seamless global distribution of digital products.
 New Channel Structures: The Internet enables disintermediation (direct selling, bypassing traditional middlemen), allowing companies to reach customers more
efficiently. Conversely, reintermediation introduces new online intermediaries (e.g., comparison sites, online marketplaces like eBay and Amazon), which
companies can leverage for distribution.
 Virtual Organizations & Partnerships: The global reach of the Internet allows companies to adopt virtual business models, outsourcing key functions while
maintaining an agile structure. Digital partnerships, affiliate marketing, and syndication (e.g., Amazon’s product listings on Google Shopping) extend Place beyond
owned digital properties.

Question 30 : Describe three alternative locations for transactions for a B2B company on the Internet.
Three alternative locations for transactions for a B2B company on the Internet are:
Here are three alternative locations for B2B e-commerce transactions in Bangladesh:
1.. Seller Site: This is the most common model where businesses create their own online platforms to showcase products, accept orders, and process payments. this
model provide with advantages of Full control over branding, customer experience, and data. Direct relationship with customers.Flexibility to customize features and
offerings.Examples in Bangladesh includes companies like Beximco, Square, and Walton have their own e-commerce platforms for B2B transactions.
2.Buyer Site: Large organizations or groups of businesses create online platforms to procure goods and services from multiple suppliers. This has Increased
bargaining power due to bulk purchases on the internet Moreover , Streamlined procurement process. Additionally , Greater transparency and efficiency. Examples
includes : Bangladesh government's e-GP portal for public procurement and some large conglomerates might use buyer-side platforms.
3.Intermediary (Marketplace): Third-party platforms that connect buyers and sellers, facilitating transactions and often providing additional services like escrow,
logistics, and financing. Advantages includes Access to a wider network of buyers and sellers. Reduced marketing and customer acquisition costs. Although B2B
marketplaces are still developing in Bangladesh, platforms like eWorldTrade and some industry-specific platforms are emerging.

Question 31. Explain two applications of dynamic pricing on the Internet.

Ans – In Dynamic pricing, Prices can be updated in real time according to the type of customer or current market conditions. There are applications of dynamic
pricing on the internet : Two applications of dynamic pricing on the Internet include: 1.Price Testing( Type of customer )
The Internet allows companies to test different price points in real time to assess customer price sensitivity. For instance, new customers can be offered discounted
rates for their first few purchases, as seen in Amazon’s early pricing trials. 2. Pricing Adjustments ( Current market conditions) : Dynamic pricing enables
businesses to adjust prices based on real-time market conditions, such as demand fluctuations or competitor pricing. For example, online retailers like Pixmania
frequently change their prices based on market trends.