5 Industry restructuring
Disintermediationand reintermediationare key concepts of industry restructuring that
should be considered by any company developing an e-marketing strategy and are
explored in more detail in Chapters 2, 4 and 5.
For the marketer defining their company’s communications strategy it becomes very
important to consider the company’s representation on these intermediary sites by answer-
ing questions such as ‘Which intermediaries should we be represented on?’ and ‘How do
our offerings compare to those of competitors in terms of features, benefits and price?’.6 Independence of location
Electronic media also introduce the possibility of increasing the reach of company com-
munications to the global market. This gives opportunities to sell into international
markets that may not have been previously possible. The Internet makes it possible toHOW DO INTERNET MARKETING COMMUNICATIONS DIFFER FROM TRADITIONAL MARKETING COMMUNICATIONS?Figure 1.13The role of mixed-mode buying in Internet marketingProduct
evaluationDecision to
purchaseOffline OnlineMail,
fax,
phone,
personFulfilmentSpecify
purchasePaymentProduct
evaluationDecision to
purchaseFulfilment
(digital)Specify
purchasePayment1
2534Activity 1.3 Integrating online and offline communications
Purpose
To highlight differences in marketing communications introduced through the use of the
Internet as a channel and the need to integrate these communications with existing channels.Activity
List communications between a PC vendor and a home customer over the lifetime of a product
such as a PC. Include communications using both the Internet and traditional media. Refer to
channel-swapping alternatives in the buying decision in Figure 1.13 to develop your answer.Disintermediation
The removal of
intermediaries such as
distributors or brokers
that formerly linked a
company to its
customers.
Reintermediation
The creation of new
intermediaries between
customers and
suppliers providing
services such as
supplier search and
product evaluation.