326 CHAPTER17 MANAGINGDIRECT ANDON-LINEMARKETING
These new on-line buyer capabilities mean that the exchange process has
become largely customer initiated and controlled; marketers must be invited to par-
ticipate in the exchange. Even after marketers enter the exchange process, customers
define the rules of engagement, and insulate themselves with the help of agents and
intermediaries. Customers define what information they need, what offerings they
want, and what prices they will pay—reversing, in many ways, time-honored marketing
practices.On-Line Marketing: Advantages and Disadvantages
On-line marketing is popular because it provides three major benefits to potential
buyers:^18
➤ Convenience.Customers can order 24 hours a day with a few keystrokes. At the
Lands’ End site (www.landsend.com), for example, buyers register their billing and
shipping information only once; after that, whenever they make a purchase, their
data will appear on the order form automatically.
➤ Information.Customers can quickly and easily find comparative information about
companies, products, competitors, and prices. Consumer World
(www.consumerworld.org), for example, offers access to dozens of comparison-
shopping sites, consumer protection sites, and many other Internet resources to
help shoppers make more informed buying choices.
➤ Fewer hassles.Customers don’t have to deal with salespeople or wait in line. This is the
special appeal of Autobytel (www.autobytel.com) and similar sites, which offer on-line
car 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 and
change prices or descriptions), (2)lower costs(firms avoid the costs of maintaining a
store and can create digital catalogs for much less than the cost of printing and mail-
ing paper catalogs), (3)relationship building(firms can dialogue with consumers and
invite them to download useful data or free demos), and (4)audience sizing(marketers
can learn how many people visited their on-line site and how many stopped at particu-
lar places 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 can
reach anyone anyplace in the world, at any time, offering private yet speedy buying for
consumers and business customers alike.^19
Consider Wine.com (www.wine.com), the brainchild of master sommelier Peter
Granoff and Silicon Valley engineer Robert Olson. Formerly known as Virtual
Vineyards, this popular site features over 300 wines from 100 wineries plus hundreds
of food and gift items for personal and corporate customers. One way the site adds
value—without extra cost—is by providing detailed information on the characteristics
of each wine, along with suggested food pairings. Customers can also join a wine club
and enjoy the convenience of automatically receiving special wine or champagne
selections to sample every month.^20Conducting On-Line Marketing
Marketers can get involved in on-line marketing by creating an electronic presence on
the Internet; placing ads on-line; participating in forums, newsgroups, bulletin boards,
and Web communities; and using e-mail to targeted audiences.