Marketing Management, Millenium Edition - epiheirimatikotita.gr

326 CHAPTER 17 MANAGING DIRECT AND ON-LINE MARKETINGThese new on-line buyer capabilities mean that the exchange process hasbecome largely customer initiated and controlled; marketers must be invited to participatein the exchange. Even after marketers enter the exchange process, customersdefine the rules of engagement, and insulate themselves with the help of agents andintermediaries. Customers define what information they need, what offerings theywant, and what prices they will pay—reversing, in many ways, time-honored marketingpractices.On-Line Marketing: Advantages and DisadvantagesOn-line marketing is popular because it provides three major benefits to potentialbuyers: 18➤➤Convenience. Customers can order 24 hours a day with a few keystrokes. At theLands’ End site (www.landsend.com), for example, buyers register their billing andshipping information only once; after that, whenever they make a purchase, theirdata will appear on the order form automatically.Information. Customers can quickly and easily find comparative information aboutcompanies, products, competitors, and prices. Consumer World(www.consumerworld.org), for example, offers access to dozens of comparisonshoppingsites, consumer protection sites, and many other Internet resources tohelp shoppers make more informed buying choices.➤ Fewer hassles. Customers don’t have to deal with salespeople or wait in line. This is thespecial appeal of Autobytel (www.autobytel.com) and similar sites, which offer on-linecar shopping so buyers can avoid haggling with salespeople over price and options.At the same time, on-line marketing provides a number of benefits to marketers:(1) quick adjustments to market conditions (companies can quickly add products andchange prices or descriptions), (2) lower costs (firms avoid the costs of maintaining astore and can create digital catalogs for much less than the cost of printing and mailingpaper catalogs), (3) relationship building (firms can dialogue with consumers andinvite them to download useful data or free demos), and (4) audience sizing (marketerscan learn how many people visited their on-line site and how many stopped at particularplaces on the site).Furthermore, on-line marketing is affordable for both small and large firms.There is no real limit on advertising space, in contrast to print and broadcast media,and information access and retrieval are nearly instantaneous. On-line marketers canreach anyone anyplace in the world, at any time, offering private yet speedy buying forconsumers and business customers alike. 19Consider Wine.com (www.wine.com), the brainchild of master sommelier PeterGranoff and Silicon Valley engineer Robert Olson. Formerly known as VirtualVineyards, this popular site features over 300 wines from 100 wineries plus hundredsof food and gift items for personal and corporate customers. One way the site addsvalue—without extra cost—is by providing detailed information on the characteristicsof each wine, along with suggested food pairings. Customers can also join a wine cluband enjoy the convenience of automatically receiving special wine or champagneselections to sample every month. 20Conducting On-Line MarketingMarketers can get involved in on-line marketing by creating an electronic presence onthe Internet; placing ads on-line; participating in forums, newsgroups, bulletin boards,and Web communities; and using e-mail to targeted audiences.