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858 WIRELESSMARKETINGTable 4Real-Time Impact of Wireless Internet on the 4 Ps of MarketingPRODUCT Real-time wireless Internet transactions force products to become commodities,
core assets to become peripheral, and valuable assets to become loss leaders.
Recognize that goods and services from wireless content providers tend to be
the same in the minds of the buyers. Marketers must create competitive
transparency to succeed.
PRICE Real-time m-commerce transactions base prices on demand at the time of sale, and
these prices change continuously. Deliver the lowest possible prices and
minimum transactions costs for goods and services from content providers.
Users demand this competitive pricing structure in return for maximum
purchases. Marketers must establish financial nakedness to succeed.
PLACE Real-time wireless Internet transactions give all sellers power in the channel of
distribution. Provide the maximum number of suppliers and minimum inventory
levels. Customers insist on success in fulfillment or the delivery of accurate
orders. Marketers must put in place distribution exposure.
PROMOTION Real-time m-commerce transactions push well-established brands out of the
market and into the dead brands society. Increase marketing openness as the
norm for customers who want promotion and advertising to provide information
rather than new entry barriers. Marketers must convert traditional push
advertising to pull promotions that are targeted to specific individuals through
permission marketing.From:Conquering the Wireless World—the age of m-commerce,by Douglas Lamont, 2001, p. 28. Oxford, UK: Capstone.
©cCaptsone Publishing Limited (A Wiley Company), UK, 2001. Reprinted with permission.by obtaining favorable publicity, building up a good cor-
porate image, and handling rumors, stories, and events”
(Kotler & Armstrong, 2001, p. 512).
Public relations consists of different types of promo-
tional activities such as press releases for launching new
products or services and holding charity events, seminars,
or conference activities. Customers tend to believe news
from public relations’ events or activities more than they
believe advertising messages. As a result, an effective pub-
lic relations program enables a company to build a good
corporate image in a cost-effective manner. Obviously, it
also allows marketers to strengthen customer relation-
ships through interactions with existing and potential cus-
tomers.Direct Marketing
There are five major tools in direct marketing: (a) direct
mail, (b) catalogs, (c) telemarketing, (d) direct-response
advertising (Wells et al., 2003, p. 407), and now (e) the
Internet. The wireless technologies help marketers to col-
lect more detailed information about their customers’
needs and buying behavior. Thus, it enables marketing
to tailor-made direct marketing strategies based on cus-
tomers’ individual’s needs. Direct marketing tools include
the following:- Direct mail—SMS and MMS through mobile phones.
- Catalogs—e-catalogs provided in Web pages, SMS, or
m-coupons of promotional offers sent through mobile
phones. - Telemarketing (message must be simple)—call cus-
tomers directly through mobile phone for information
promotional offers. - Direct-response advertising (to obtain action-oriented
objectives)—interactive advertising messages hosted in
m-commerce or the wireless Internet, which are sent
directly to customers through mobile phone.In addition, service providers may apply either push or
pull promotion strategies for to pursue their promotional
objectives (e.g., to create a level of awareness). Kotler and
Armstrong (2001, p. 531) defined the two strategies as
follows:Push strategy is a promotion strategy that calls for using
the sales forces and trade promotion to push the prod-
uct through channels.
Pull strategy is a promotion strategy that calls for spend-
ing a lot on advertising and consumer promotion to
build up consumer demand, which pulls the product
through the channels.Real-Time Impacts of the Wireless Internet
on the Four Ps of Marketing
Lamont (2001) summarized the “real-time” impact of
wireless Internet on the Four Ps of marketing (product,
price, place, promotion) as detailed in Table 4.Wireless Marketing and Examples
of Business Models
Companies adopt different business models based on
their strengths and their market situations. The follow-
ings are some examples of business models for wireless
marketing:- Focus on every opportunity for generating revenues
from wireless portal. InfoSpace is considered as a
very successful wireless portal. It generates revenues