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)