12-The Internet and Interactive Media.ppt

The Internet and Interactive Media Adding Two-Way to One-Way Media A majority of most companies’ sales and profits come from current customers. To motivate repeat purchases, companies need to continually connect and reconnect with customers. The media most suited for doing this are addressable, interactive media. The Internet Picture Communication and Technology The information age is shifting people from manufacturing to service industries. More complex communication requires more bandwidth. The Internet has become the fastest-growing communication technology in history. However, it still accounts for only a small portion of all business activities. Q.: Why Market in the Online Environment? A1: Because it’s where consumers are. (Somebody has to provide the goods and services) A2: Because it’s where the money is? (Perhaps, for some things…) A3: Because nobody likes to be left out. (The bandwagon moves quickly) A4: Because nobody else is there. (An empty niche is hard to find.) A5: Because it’s not too hard to get in. (Low correlation with success!) Why use the Internet? Three strikes and you’re out! Demand risk Innovation risk Inefficiency risk Reducing demand risk—fewer customers want to buy a firm’s products/services Market penetration Increase market share Develop markets Existing products into new markets Product development Create new products for existing customers Diversify New products into new markets Reducing innovation risk There is an oversupply of products in most mature markets Customers expect something new and different Increase access to: Ideas for improving present products and services Ideas for new products and services Ideas for redesigning the delivery of products and services Use the Internet to open communication links with customers and other stakeholders Reducing inefficiency risk Lower the cost of the customer information exchange cycle Reduce order handling costs Reduce inventory Reduce service delivery costs Transaction costs Disin