WHAT THE EXPERTS SAY...



The internet network is becoming increasingly popular among businesses as an avenue for marketing their products and services. The system is growing rapidly, with twenty-five million users in ninteen-niney four, a number which is expected to increase over the years (LaMonica 57). An Internet expert predicts that the number of commercial users on the Internet will reach fifty million by ninteen nintety-eight (Cross 20); a fifty percent rise in only four years. What implications and effects are in store for the future of marketing with such a rapid advance in technology? Experts express both concerns and breathless anticipation. This computerized information boom has enormous potential to boost economies world-wide, but it also has the possibility of being expolited. Advertising and marketing on the Internet makes obtaining huge profits possible. Id Software Inc., for example, sold several thousand copies of its Doom cliff-hanging software game the first weekend that it made the game available on the Internet. The company now has sold about ten million dollars worth of software via the net, while avoiding the costs of overhead that generally consume profits. (Fryer 118). Sellers, though, are not the only ones to reap benefits from the internet. Purchasing products over the net is also beneficial. It is faster than the traditional process of mail ordering, and the on-line support forums provide advice that is not found in manuals, catalogs, or brochures (Fryer 118). To have marketing success on the internet does not require the abandonment of traditional marketing methods; innovation and placement are the prime components in the formula for acquiring internet revenues. Those businesses who devise a successful marketing plan are guaranteed a large profit for their efforts: commercial trade on the net is currently estimated at $200,000 per day, and is expected to substantially increase over the years. (Cross 24) To make the network work to thier advantage, direct marketers have more to consider than just developing a sound financial plan of action. Internet experts lay out several suggestions to generate profit and be a net success. Marketers should avoid being intrusive or sending unwanted messages, for practically noting else annoys internet users more. Instead, an affective approach is to use the internet for building higher levels of relationships with consumers through diaglog (Cross 22) Furthermore, Oglivy & Mather Direct has developed six rules for advertising on the Internet: consumers should only be given information which they have requested, data derived from a consumer interaction should never be resold, advertising should be limited to pre-specified newsgroups and list servers, promotion and direct selling must be preceded by full disclosure, consumers must be informed of end uses of market research, and communications software must not contain hidden functions (Nisenholtz 28). What does all of this mean for the future of marketing? The internet, as of now, is a free enterprise network. Neither government nor big business owns or regulates its content or procedures, thus allowing for a liberal dissemination of information. The costs for marketers or purchasers to use the net is very low, thus enabling both groups to make or save money. There are, however, problems to consider in this cyberspace wonderland. Commercial interests are flocking to the internet, and are directing their aims to the distribution of services and information to mainstream commercial audiences. (Ellsworth 190) Marketers should, experts of the net worn, be more cautious before starting internet sites and pages. Rather than automatically assuming the benefits of the medium, they should realize that many Internet sites offer poor data. They are much less accessible than interactive TV services, and they often include outdated information. Marketers should experiment with the medium but not blindly embrace it for the sake of their image (Donaton 18) Rushing to set up shop on the web could be disasterous without the proper research and attitude, because the technology lacks such mission critical features as management, backup, security, and performance management. Some businesses, such as Pizza Hut, simply may not have internet-using customers; however, the low cost of setting up on the internet still remains a good argument in favor of doing so anyway (Semich 37). A good guage of what advertisers should focus upon comes from what type of audience they are playing to on the internet. Net users want advertising to be informative. A reason for this advertising approach focuses upon an internet user profile with notes that internet users are predominantly educated, discerning individuals. A survey of internet users by a commercial marketing firm found that eighty-seven percent possess a college degree and sixty-seven percent earn more that 50,000 per year (Vis 24) What are the best ways for business to market goods and services on a computer network occupied by such individuals? Experts on the use of the internet, some of whom have played major roles in linking its twenty-five million users, are uncertain. Some experts stress the unique cultural norms which are evolving among internet users as the best way for business to develop an internet customer base. Among the major barriers to successful marketing are security concerns and the absence of a definitive look and feel that will appeal to consumers (LaMonica 57). While the net is viewed as more user friendly than interactive TV, transactions are, as yet, few because of technology hurdles. For one, the net is not a closed system, which raises concerns of security. In addition, the differing computers and networks that comprise the net makes develping transactions difficult (Lang 118) The internet also requires increased competitive effort from enterpeneurs because government bureauvcrats and their associated tax payer-supported groups will not provide the best information superhighway (Metcalf 44) This leads to widespread concerns that the internet will become a breeding ground for monopolies as groups struggle to gain the most control and profit from the net. (Stinart-Threikald 51)