DOI: 10.5176/2251-1970_BizStrategy17.10
Authors: Yu-Feng L. Lee
Abstract: Online fan-based marketing is a novel blue-ocean business strategy in e-commerce. Its practice is linked to the conventional marketing mix of the 4 Ps – Product, Price, Place, and Promotion via the Internet portal, with a proposed fifth component – Pride, called the 4 Ps + 1 paradigm. In China, Xiaomi Inc., one of the world’s largest smartphone makers, uses this marketing scheme to reach world record sales through respectively, Product – focusing on instant ‘user experience’; Price – emphasizing ‘high affordability and product functionality’; Place – aiming exclusively at emarketplace; Promotion – marketing exclusively via the Internet, and Pride – creating the hardcore fan-club known as ‘Mi-Fans’. Its business model is deemed innovative and may become an inspirational architype in modern e-businesses.
Keywords: Online Fan-Based Marketing, Xiaomi (China), Blue- Ocean Strategy in E-Commerce, Evolved Marketing Mix 4 Ps + 1
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