Business-to-Business Internet Marketing, Fourth Edition - Lifecycle ...

Selling on the Internet 285
Yet another Internet-based retail model is the auction. Auction sites
are springing up on the Web to facilitate bidding on new and used products,
services, and more. There are variations to auctions such as price
comparison sites and “name your lowest bid” sites. In fact, auctions
and these related sites are one of the hottest growth areas on the Internet.
Auctions are clearly designed to generate revenue for the sponsoring
sites, but there is a key characteristic they share that differentiates
them from other e-commerce applications: Many auctions are also
Internet-based communities. That is because the auction encourages
ongoing interaction between buyer and seller, and often between seller
and seller, via bulletin boards, newsletters, and community activities.
The Reseller Model
Many b-to-b marketers rely heavily on distributors, resellers, retailers,
or partners to generate revenue. This is very common in the high-technology
sector, especially in a global economy where selling products
might be more efficiently done through indirect channels.
Depending on the type of product or service you offer, the reseller
channel may enhance or even dramatically change the item you sell. For
example, a computer manufacturer’s business systems are often bundled
with a distributor’s, reseller’s, or partner’s own products or services to
create a total package or solution sale. The reseller adds value to the
sale (hence the term “Value-Added Reseller,” or VAR). The reseller channel
may just as easily become an extension of the company’s direct sales
force (which, if it is not handled properly, can create channel conflict
situations—harmful to prospects and customers alike).
Sony caused a furor in February 2000 when it launched
SonyStyle.com (www.sonystyle.com) to sell consumer products online
in Japan, effectively competing with its national dealer networks. Since
Sony already owns 2,000 Sony shops throughout Japan, the move could
potentially cannibalize dealer sales.
How do you apply the reseller model to Internet-based order generation?
Part of the answer depends on the type of relationship you
have with your resellers and how they sell and deliver your products or
services to the end user. Consider the concept of populating your resellers’
Web sites with information you supply if resellers will allow it. Also
consider the possibility of funding e-commerce initiatives with the goal
of obtaining site prominence on resellers’ sites for your products.