9.3.08 Blog 2
EBay is believed to be the 1st community site
Two Business models
Google wants to open everything up and Microsoft wants to keep everything private.
International web link: Cell Phones
The internet along with consumer divulgence allows for internet marketers to target more accurately. With GPS and constant mobile connectivity marketers can and will send you localized offers. We think it’s just cool to have the local weather on our homepages but, we are just giving away directions for advertisers to find us.
Information Rich Products
How do you get leads: you need names, email addresses, segmentation?
Information products are absolutely necessary
Information product is the mail list you buy
Information rich is the information you pay for with the product.
What we do in marketing
Atomic Dog Publishing – Figure View
Get the Customer, value the customer, give them information rich products to value them and gain trust, then you can make offers to them for getter purchase participation.
– these customers a interested already now you have to get them with added value
Fed ex started the information rich product with package tracking allowing you to see where the package is at all times.
Information rich products
Information that affects the purchase of a product
Drivers of the internet economy
Interactive TV, full streaming TV is coming then it will be mobile
Computing power Doubles cost is cut in half
Power of the Network increases geometrically with each new connection
Information gives greatest value added: Greater selection 1000’s of colors and brands
Distance no longer matters: no one cares where it comes from so long as it works
Speed is of the essence: how fast it gets to you
People are the key assets
Growth is accelerated by the network: Metcalf’s law the network gets better with more so long as interests are the same
Demand can be predicted more accurately:
Marketers can deal with customers 1 on1: profiled information, advertising relevant to what you want
Transaction and coordination costs decreases: the entire supply chain and customer relationship have gotten cheaper and better, planning can be more efficient, the supply chain can be more accurate
Customers have power: competitors are closer no driving and hopping form place to place
Economy characters by choice
Michael Porter 5 forces
One model is building to sales forecasts
Dell is made to order, built to demand -> if inventory is too low they can offer discounts on alternate items of greater value to supply the demand and make the customer feel valued
What is the highest profit margin from Dell? Financing Protection plan