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On Tue, 11 Apr 1995, Suzanne Lainson wrote:

> Perhaps a better question to continually ask is, "Why do people buy what
> they buy, and how will internet marketing impact this?"
> 
> Since people have limited resources of both time and money, they are not in
> a position to buy more items now than in the past just because those items
> are on the internet.  If anything, product consumption will probably go
> down as communication consumption goes up if they are competing for the
> same dollars.
The advantage of on-line is that many sources can be competitively 
researched, with less "shelf-time" to the internet merchant.  When I am 
retailer, I have to pay flooring charges and interest on display 
merchandise, surplus merchandise, and goods that are obsolete or have 
gone out of style.  Then there are the clearance sales (just to keep cash 
flowing)  Then there are taxes on inventory, and the gnawing question:
	What will they buy this season.


> There has been relatively little discussion of marketing per se in
> conjunction with the internet.  Most of what I've read has centered around
> technical issues and advertising and PR issues.  Consumer behavior just
> hasn't been explored much online that I'm aware.
Up until recently, the internet was a well-kept secret.  An "underground 
marketplace" used almost exclusively by head-hunters, real-estate agents, 
hardware/software vendors, and service brokers.  This was because the 
internet was very difficult to use.  The UNIX server had to be configured 
and maintained buy a BSEE for prices of $2000/month and up.  The tex-only 
interfaces made dial-up the preferred remote interface.

Companies like Softronics, WAIS, Spry, and Trumpet attempted to make the 
user interface to traditional services easier to use, but the web made the 
entire internet a  "point and Click" proposition.  Mosaic, Cello, 
NetScape, WinWeb, and even LYNX make massive amounts of information 
available to anyone who can play a video game.  Octagenerians are having 
a great time in the "virtual reality" of the internet.

> However, there are still reasons for companies to have a presence
> online--economics.  As long as the internet is a relatively cheap
> communication medium (cheap in terms of server space, creative and
> technical labor, online time costs, and so on), companies should consider
> it as part of their marketing comunication mix.
Online economics also includes the ability to ship from manufacturer to 
retailor or customer in a matter of hours.  Demographics even make it 
possible to show a line in every size from 3 to 18.  Since the 
presentation can be sorted/accessed in any order, I could see the line 
from "Show me what you have in size 16" to "Show me what you have in 
black satin dresses".  The customer quickly qualifies himself.  If the 
sales-person can see the history list, he/she can actually bring the sale 
to a close on-line.  Try that with a newspaper ad.

This reduced overhead results in higher productivity and lower costs.

> Also internet marketing will be valuable if it makes products more
> affordable for consumers.  If consumers can save either time or money or
> both by buying on the internet or as a result of advertising/PR on the
> internet, then it will be an important marketing vehicle.  However, I have
> seen little sign of this yet.
There has been quite a bit of activity in private mailing-lists, private 
news-groups, and private servers.  The biggest shift now is in the 
wholesale and distributor markets.  One future prediction is that the 
"clothing consultant" at Joyce Leslie will find out what styles you like 
and take precise measurements, make notes about where to "drape", and 
order clothes that can be altered in New York or Los Angeles and 
delivered overnight.  A dress ordered on tuesday will be delivered by 
Friday afternoon.  The dress of the rack: $45, custom fitted: $55.  The
lack of flooring covers the rest of the delivery charge.

For the economy minded, the browser can pick a desired pattern and find 
out from the distribution chain, where that pattern, in her size, was 
delivered.  If you've ever taken a woman shopping for a dress or party 
clothes, you know how much they want their style in their size.

> The other option is when highly desirable products are only available
> through the internet.  This would be the equivalent of catalog shopping.
> (For example, I buy some clothes from J. Crew and L.L. Bean because they
> are unique to those companies.  Of course, I usually only buy them when
> they are on sale.)
One of the biggest advantages of the internet is that it provides 
national exposure to manufacturers and "cottage industry" producers that 
would otherwise only be available to big name fashion designers.  The 
diversity that is possible is incredible.  When they ask "Where'd you get 
it" and the response is "The internet", the logins from teen-aged girls 
will triple overnight.

> Suzanne
> 
> Suzanne Lainson         SportsTrust             Integrated Marketing
> slainson@rmii.com       P.O. Box 2071           Sports and Event Marketing
> 303 473-9884            Boulder, CO 80306       Online Marketing

Just think, the latest trend in fashion could be coming out of Boulder 
Colorado!

	Rex Ballard


From rballard@cnj.digex.net Tue Apr 18 20:32:17 1995
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