Chapter 5 Internet Marketing News Analysis and Reflections

Internet Marketing News Analysis



Source: http://www.internetretailer.com/dailyNews.asp?id=25531


What I learned:
This article is about how the NHL is capturing information about their fans, and using it to market things to them. The article states that fans are anywhere from 50%-300% more likely to respond to something that has their team name on it, as it seems to be some sort of emotional attachment for them. The NHL has also been negotiating with companies that sponsor them, to share information about its consumers. In the past year, the customer data-base has grown 40% and although they do not post sales, the NHL says they too are up by about 35%. One more marketing technique they are using is to list web pages that fans can use, right in their direct mail catalog. This way fans can order what ever they want, right off the internet. This just goes to show how companies are finding more and more ways to make money and fill the need for what we as consumers have created with the internet and its shopping compatibilities. The more we shop, the more they are going to try to market directly to us.


Reflections:


Chapter five talks about understanding the internet consumer. The internet has gone from a service used by scientists and "geeks" to a product fueled powerhouse. The rapid speed of change of this technology makes understanding the internet consumer very difficult. It also has had a huge effect on younger internet users, most children have more knowledge of how the net works then their parents do. Because of the rate of growth, the dynamics of the web have not only changed greatly, but any statistic is usually out-dated before it can be printed. Because of this, companies are working hard to understand and stay ahead of consumer behavior.
It is estimated that in the U.S. alone, e-commerce retail will grow from $172 billion in 2005 to $329 billion in 2010. This adds up to be a 14% compounded annual growth rate. These numbers are growing just as rapidly in other countries as well. Going hand in hand with shopping, people are using the internet to also search for what they are looking to buy. The book says that search plays a role in roughly half of on-line purchases and that over half of the searches were done at least two weeks in advance. I find this statistic to apply to my own shopping habits. What better way to shop around and make sure your getting the best deals, then being able to compare products and companies all over the world, then from the comfort of your own home. The book also says that travel sites are most influenced by web-sites. Is there really any other way to plan a trip or find a flight any more?
Because of all the consumption on the internet, marketing research has moved in that direction with a vengeance. There are significant advantages to on-line marketing research. Its quicker, cheaper and has way better access to larger groups of people. It is also able to collect more in depth information then regular mail surveys, and more convent (thus more likely to be completed by) the respondent. Whether first-hand, secondary or even third party data, market researchers have defiantly found a great way to monitor customer interactions as well as buying patterns and habits. This essentially leads to stronger target marketing and even product development research. It is here to stay.