参考答案：ProductAt present, TMP offer conventional physical books. E-business may provide opportunities for either replacing or augmenting this product. For example:– Replacing the book with an electronic alternative that customers can read directly from the screen, view through an e-book reader or print off at their own cost. This may allow the range of products to be increased, introducing books that would be uneconomic to produce conventionally.– Augmenting the product by providing supplementary services and features. For example, many text books now have an associated website that includes further case studies, exercises, solutions, simulations etc. This may be particularly applicable to management texts where readers often require further information.Using e-business to change the nature of the product should help reinforce two of the drivers identifi ed in the fi rst part of this question. It should help reduce raw material costs as well as helping the company meet environmental targets. Augmenting the product should help deliver a better quality product to customers.E-business also offers opportunities for extending the product range, perhaps offering (through intermediaries) management training, fi nancial advice and other related services.PriceAt present TMP largely sells through bookshops and so the TMP price has to refl ect a profi t margin for the bookshop. If TMP exploits e-business to develop a channel that eliminates bookshops, then it should be able to simultaneously discount the price of the book and yet still improve their profi t margin. E-business may also be an opportunity to experiment with differential pricing. The scenario notes that overseas sales are low because of the relatively high sales price of books. TMP may be able to combine differential pricing (in local currencies) with electronic alternatives to fi nd a product that is saleable in these markets.TMP has to be aware of any price-comparison websites and be prepared to monitor costs on these sites and react accordingly. They also have to be aware of large established channels, such as Amazon. Such sites will expect keen pricing, but will also pay commissions on books sold through the site.Finally, TMP might seek an alternative price strategy, based for example on subscribing to the site, rather than selling books. A ‘book’ may become a continually updated web resource that customers pay to use on either a one-off or continuing basis. There is no need for them to actually own the book themselves. TMP therefore becomes a virtual library.Direct pricing to customers also provides the opportunities for special offers, pre-publication prices and other deals. For example, special discount prices on related books can be offered to customers who have placed an order for a specifi c book.PromotionAt present, promotion is restricted to a custom-built display case at bookshops and full-page display advertisements in magazines and journals. Such promotion refl ects a conventional ‘push’ approach to marketing that focuses on the product rather than the customers. If the website records the details of visitors, then the company can identify potential customers for its products and target them in mail-shots and on-line suggestions. For example, customers who have bought certain titles may have others suggested to them when they next visit the site. Many sites also make buying suggestions based on the behaviour of other customers, for example displaying ‘other titles which have been bought by customers who have bought this book’.E-business will require the company to consider both its online and offl ine promotion. TMP may be able to reduce its offline expenditure, cutting back on advertising. In its place it might spend elsewhere, particularly in making sure that it figures prominently in search engine listings. Links to other sites should also be considered, allowing promotion of TMP books on related sites. For example, internet sites providing management advice, information and glossaries may have a link to the TMP site. TMP pays commission to the site on sales made through such links. Banner advertising might also be considered on such sites. A similar approach might be used with academic websites where a TMP book is recommended reading for a course.PlaceBookshops have limited reach, although they do provide the facility for the potential buyer to handle the book (see physical evidence). The display advertising has unpredictable reach. Circulation fi gures are usually provided by journals and magazines but this does not give any information on how many people actually read the advertisements in question. The scenario suggests that both bookshops and journals appear to have declining reach, based on statistics about their closure. The internet has global reach. The relatively small percentage of books currently sold outside Arcadia is attributed to the cost of those books. However, it may be that the rest of the world is simply unfamiliar with TMP’s booklist, a shortcoming that will be addressed bythe internet siteIn wider e-business terms, a consideration of place will also lead to TMP considering whether it is economic to continue printing in Arcadia which is a high-cost economy. The printing works were established E0 years ago and it seems likely that cost-savings could be gained by printing and distributing the books in lower labour cost economies.Physical evidenceOne of the problems in buying books is the ability to look inside those books before purchase. Often titles are insuffi cient to make a purchasing decision. One of the advantages of the bookshop is that the potential buyer can physically inspect the goods, looking at the content in detail to ensure that it meets their needs. In contrast, physical evidence is not possible at all through display advertising in a journal.On the website, it would be possible to allow the potential buyer to view the contents of the book in detail and (usually) one physical chapter. This so-called ‘look inside’ facility allows them to base their buying decision on some (but not all) physical evidence. Further evidence can also be provided by unsolicited recommendations and reviews from other customers. Feedback, comments and rating systems are typical features on a website. These are rarely available through the bookshop. The bookshop employees have rarely read all the books they sell and, if they have read the book, are probably biased towards a sale. Sometimes, reviews have been placed in the book, often from a previous printing or edition. However, these are only the ones sanctioned by the publisher. Unsolicited references are one of the advantages of the website (as long as they are good!).The problem of physical evidence can also be addressed by seeing the book as a website resource rather than a physical entity. If the reader pays for access, then very little expenditure is likely on a book that does not fulfi l the reader’s requirements and expectations.