eTransformation: From the four Ps to the four Cs

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Success Factors for Online Music Marketing

• eTransformation From the four Ps to the four
  Cs
• Cornelia C. Krueger
• Nhiem Lu
• Paula M.C. Swatman

CollECTeR Latin America Sept 29 Oct 1,
2003
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Introduction

• P2P Networks promote the attitude that online
  music is free
• Major music companies try to sell digital music
  through official Web sites like Pressplay,
  Musicnet in the US, Popfile and Tiscali Music
  Club in Europe
• Still very unfavourable alternative for young and
  technically aware consumers
• iTunes Music Store
• Marketing /eMarketing principles impact on online
  music offers
• Are music companies online aware of the four Cs?
• Success factors for online music marketing

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Marketing and eMarketing literature

• The four Ps (Bovée et al., 1995, p.17)

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Marketing mix literature
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The four Ps and the four Cs

• Product Customer needs and wants
• Promotion Communication
• Place Convenience
• Price Cost to the customer

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Research approach

• Do legal online music offerings consider the four
  Cs customer solution, customer cost,
  convenience and communication of eCommerce in
  their marketing activities?
• What are the key factors for a successful
  Internet offer in online music?
• Analysis of non music-related but successful
  Internet companies (Amazon and eBay)
• Comparison to Popfile and Tiscali Music Club

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Amazon
Source http//www.amazon.com
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eBay
Source http//www.ebay.com
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Online music platforms
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Music companies actions

• Cooperation with Internet service providers which
  host P2P sites
• Legal action against Kazaa etc.
• Legal actions against file-sharers themselves
• Attacking P2P networks with damaged files

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Success factors for online music marketing

• Concentrate on selling digital music as a core
  competence
• Customer as an ally
• communication and convenience
• De-criminalise P2P networks by making them pay
• the Gehrke/ Anding model
• Coopetition to ensure a great variety of music
  to offer
• customer wants and needs and convenience
• Use the Internet technology to make customised
  offers
• acc. to customer wants and needs and customer
  costs

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iTunes

• Catalogue
• including the 5 majors repertoire
• Mobile listening
• iPod, streaming on other Macs
• Copying is allowed
• 5 times per song
• AAC format (high quality) MPEG4 (MP3 still
  available)
• 99 US-Cent per song
• Online music platform for individual preferences
• combination of Jukebox-Software, Music Store
  and Music Player iPod