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Exploring the ideas of product，place，price and promotion，and applying them to e-Business problems is the main focal point of this article(Figure 2)．It is believed that the four concepts of the marketing mix equally play a critical part in the success of e-Business．Therefore，concentrating on these concepts will prove to be of the utmost importance as an e-Business provider．

One of the main issues of concern is the intangibility of purchasing online．The intangibility is caused by not being able to focus on tangible aspects when purchasing online．The customer can't actually touch or feel a product，which increases the risk of the purchase．The key to reducing intangibility is creating tangible cues that the customer recognizes．Creating a positive brand image will reduce the risk．For example，buying a product that has a quality image will reduce the risk of customers．Companies need to focus on creating a positive and reliable brand name．

Stressing the actual or perceived benefits received from the product can also reduce intangibility．Relaying to the customer that they will be very satisfied with the benefits of the product is important．For example，if a company sales golf clubs online，they want to stress concept that they will hit the ball farther and straighter，which will allow the person to increase their enjoyment when playing golf．Also，focusing on the actual components of the product is important．Explaining the benefits of the clubs grip and shaft in the product will also redirect the attention away from the intangible aspects．

Focusing on advantages of buying online is also important for companies to achieve increased sales．On the Web site it is important to convey the convenience of buying your product online．Conveying the message that your product is conveniently accessible，lets the customer understand that they don't need to stand in lines or deal with other customers．^②Long lines and other customers can keep customers from buying or decrease the amount they are willing to purchase．Explaining the convenience of buying on line is a good way to reduce the problem of intangibility．

There are some instances where the convenience of online buying can be diminished．When the customer finally decides to purchase a good it's important for this transaction to be quick and concise．The quicker this action can be done accurately the better．^③If it takes a long time for this action，customers may defect and buy the product through a local retail outlet．Companies need to be aware of this and implement the proper technology to assure that this barrier is minimized．^④

Since products can't be seen in person，it creates a barrier between the company and the buyer．A possible way to overcome this factor is through technology．By providing actual pictures of the product，it will allow the customer to get a better understanding of the products．If the Web site has high quality pictures，it will reduce the perceived risk，which can increase the sales for a company．

Products that are produced in different sizes，such as clothing，create a problem for companies．Customers that want to buy the product may not because they are not sure how the product will fit．^⑤This creates a problem for the company，it is important to have a lenient return policy，but even more importantly，they should purchase software that helps in sizing．This software will allow customers to input their measurements and the Web site will recommend which size is best for them．This type of technology will reduce the risk involved，which will increase the number of products sold．^⑥

The service involved is also a barrier that must be understood and managed correctly．Having a lenient or fair return system will lower the perceived risk involved．The customer is more likely to purchase the product if they know that returning the product will be of minimal hassle and at no expense．Providing the high service is directly related to increasing sales．Companies should also pay the postage to have the product returned．Paying the postage will again，lower the perceived risk，will most likely help in stimulating sales．Of course，this can only prove to be beneficial if the product doesn't have a high defective rate．

Some of the distribution problems are uncontrollable at this point in the life cycle of the Internet．In some instances the problem of delivering the product to the customers isn't the fault of the online company．Nearly every online company does choose to outsource the delivery function，which at this point is the most efficient．Online companies are having a difficult time satisfying their customers，because of something that isn't their fault．The company that they select to ship their product isn't handling the demand．For high volume companies this can be easier to solve．

There is a definite need for companies to manage the relationship with the shipping companies．The bigger the company the more power it posses in the supply chain．They have the ability to hurt the shipping company by choosing to change shippers．Even though there are few shipping companies，the online company can claim they will switch，if their quality of service doesn't increase．By threatening a switch，it will hopefully create better service for a large company．

One of the biggest problems with online buying is the lack of automated inventory and warehousing systems．The lack of automation really hinders in the efficiency and speed of meeting the customer needs．For small companies，it is a good idea to outsource the warehouse and distribution functions，because they aren't efficient enough to meet customers'needs．Outsourcing will reduce the actual profit，because it is expensive．Over time it will prove to be beneficial，because it will help in building loyalty．The most important thing to understand is choosing the correct outsourcer．Companies want to pick an outsourcer that isn't overbooked with clients so they can efficiently handle demand requirements．

Large online companies really need to consider automating the inventory and warehousing functions．This may be the best way to stay competitive in the future．The use of logistics consultants is a good strategy to assist in choosing an automated system that matches company needs．

Large companies that use outsourcers should look into instituting their own logistics system．Even though it is working for the company，it may be reducing profit．Each part of the supply chain makes a small profit in the online commerce．The actual sale of the product makes a small profit，the warehousing makes a small profit，and the packager makes a small profit．Add up these areas and that means there is a larger profit to be made by taking over these functions．If a company can do these functions themselves，they will increase their profits，because they can do it cheaper than an outsourcer．

Managing warehouse systems can be improved through the use of software．Warehouse-management software systems are now available for online companies to purchase．These software packages can increase the efficiency by handling orders and tracking the delivery function．These are possible solutions that a company can do to implement automation in the company．

Price is very important when dealing with e-Business problems．Price can be a key issue when trying to increase demand or when decreasing demand．Price is definitely a weapon of choice by many companies．The two typical pricing methods are skimming and penetration．Skimming pricing is charging a high price when the product is relatively new，in hope of making more profit．Penetration pricing is deployed to capture a large market share．The theory is based on creating a large market share，by being lower than competitors．

To increase demand，e-Business companies need to focus on penetrating the market．This will work best for products that are in the introduction and growth stage．If the product is near the maturity stage，lowering the price won't increase profits very much．For relatively new products，offering the product below competitors will increase demand．

Pricing of a product can reduce demand without reducing profit．If an online company is doing very well，but isn't able to keep up with the current demand，it may be smart to actually raise the price of the product．This will do two things:it will keep profits at the same level，but allows the logistics department to handle the orders more efficiently．If companies can't keep up with demand，it will reduce the satisfaction of the customer，which will reduce the loyalty of the customer．A solution to keep customers happy is by reducing the demand through increasing the price，which will lower the number of purchases．Reducing the purchases will allow the company to match demand;in return it will be easier to keep current customers．It is believed that keeping current customers is five times cheaper than finding new ones．When raising the price，it must be by a marginal amount，enough not to cause switching of loyal customers．Doing this will allow a company to keep the same profit and manage demand more efficiently．This solution may want to be done until the company can acquire an automated system．

Pricing bundling is packaging products together for one price．Using this tactic can be beneficial when doing business online．This can increase sales for a company，because customers feel they are getting more value for their money．Increasing the value will reduce the risk for customers．Reducing the price by say 10%，it can allow a company to increase sales．Sometimes this can be done with a product that is trying to be liquidated．This is a chance for the company to accomplish two things:to increase sales and to reduce unwanted inventory．

Promotion is an important part when selling the product．It is a necessary function for e-Business companies．This is one of the key facets in acquiring and keeping customers．Keeping and acquiring customers is important，but more attention and money needs to be spent on the place factors，such as warehousing and distribution functions．Some of the budget promotion money should be spent on developing better relations with distributors．Creating a strong bond with the delivery carriers will enhance the value of the company．This can be done through personal dealings with vendors．Doing such things as taking their representatives to events or to dinner can build a loyal relationship．These activities are inexpensive means that can really give an advantage to an e-Business company．

Some troubles for e-Business companies are the inability of customers to find the Web page．If they can't find the Web page，it creates a barrier in achieving increased sales．The current technology of search engines，such as Yahoo!and Excite，are very broad in nature．When looking for a specific company it will bring up a vast variety of topics．It takes a while to narrow down the possible entries to find the intended company．Reducing the time spent looking for a Web site can increase the satisfaction of the customers．^⑦If they must spend twenty minutes looking for a particular site，they may stop before they find it．A company can use promotion to combat these problems．

The best way to combat the problem is using promotions that give the Web site address．If the product is high involvement，using advertising that is in magazines and newspapers should be efficient．For high involvement goods，people actively search for possible solutions to their problems．If the product is low involvement，people will not be actively searching for the product，so promotional activities must be intense．This can be accomplished by getting a large number of advertisements into television and radio vehicles．

Another possible promotional vehicle is using hyperlinks．Hyperlinks allow a direct passage from another Web site．This makes it very easy to find a particular Web site．Hyperlinks are usually most efficient when implemented on a Web site of similar material．In addition，there is no need to alienate customers or potential customers through promotional tactics．False or unethical marketing ads become an issue in recent years，and it isn't uncommon to find many of these Web sites．It can be just puffery or it can be full blown bait-and-switch tactics．

Buy.com has built a reputation in participating in false advertising on their Web site．This is definitely something e-Business companies need to get away from．With growing popularity of e-Business，the more this is done the more it will create havoc in the future．^③With increase volume in online buying，there will be more restrictions and patrolling of false and unethical promotions．With increase in online buyers，it will increase the importance of word-of-mouth communications，which can cause problems．Doing this type of promotion will decrease the confidence and loyalty of customers，which will reduce sales in the future．A company's profit is directly related to customer loyalty，and these types of promotions will decrease loyalty．The question is clear，do they want to make a profit in the short run or be able to male a profit in the long run?

New Words and Expressions

7．defect(n．)the lack of something necessary or desirable for completion or perfection;deficiency缺点，瑕疵

8．outlet(n．)a store that sells the goods of a particular manufacturer or wholesaler商店

10．perceive(v．)to become aware of directly through any of the senses，especially sight or hearing意识到

11．lenient(a．)inclined not to be harsh or strict;merciful，generous，or indulgent不苛刻的，仁慈的

13．outsourcing(n．)the procuring of services or products，such as the parts used in manufacturing a motor vehicle，from an outside supplier or manufacturer in order to cut costs外购

16．inventory(n．)to make a detailed，itemized list，report，or record of things in one's possession，especially a periodic survey of all goods and materials in stock盘存

19．logistics(n．)the management of the procurement，distribution，maintenance，and replacement of materiel物流

24．marginal(a．)barely within a lower standard or limit of quality最低限度的

31．puffery(n．)flattering，often exaggerated praise and publicity，especially when used for promotional purposes吹捧，尤指用于促销时夸张的赞扬和宣传

32．bait-and-switch(a．)玩诱饵调包手法的，引诱顾客购买高价商品的

1．This text is selected from A New Marketing Strategy for E-Commerce，written by Chong Y．Lee in Pittsburg State University，USA．

2．Conveying the message that your product is conveniently accessible，lets the customer understand that they don't need to stand in lines or deal with other customers．本句中，“Conveying the message that your product is conveniently accessible”是一个现在分词短语，用作句子的主语，其中，that引导的从句近一步说明message的内容。“to stand in lines”短语，意思为“站队”。

3．The quicker this action can be done accurately the better．The bigger the company the more power it posses in the supply chain．．．．the more this is done the more it will create havoc in the future．这三个句子都使用了the more．．．the more结构，意思为:“越…越…”。

4．Companies need to be aware of this and implement the proper technology to assure that this barrier is minimized．本句中，“implement”用作动词，共用前面出现的“need to”。

5．Customers that want to buy the product may not because they are not sure how the product will fit．本句中，“that want to buy the product”修饰主语“customers”，谓语“may not”是一个省略用法，相当于“may not buy”。

6．This type of technology will reduce the risk involved，which will increase the number of products sold．本句中，“involved”是过去分词修饰“risk”;“which will increase the number of products sold”是非限定性定语从句，补充对主句进行进一步的说明。

7．Reducing the time spent looking for a Web site can increase the satisfaction of the customers．本句中，“Reducing the time spent looking for a Web site”是一个现在分词结构，作句子的主语;其中“spent looking for a Web site”是一个过去分词结构，修饰“the time”。