Chapter4 Internet Marketing News Analysis and Reflections

Internet Marketing News Analysis


Source: http://money.cnn.com/2007/10/02/technology/videousedcars.biz2/index.htm?postversion=2007100307


What I Learned:
This article is about how people have gone from buying used cars on a car lot to posting videos of them for anyone who is looking. Hotswap was invented by Luke Thomas who was interested in buying a car on-line, but was disappointed when all the vehicles seemed to look better in their photos then in real life. Launched in March, it is estimated to have over 11,000 listing by the end of the year and about $2 million in funding from venture firm Kinsey Hills group. The article states that video is what people want, and goes on to say that Americans spent $358 billion on used cars just last year, with 1/4 of cars being bought on the internet. The Hotswap listing is free and allows users to see every scratch, dent and imperfection on the autos with the use of the video camera.


Analysis:
What will they think of next? The internet is evolving at a speed fast enough to keep up with almost every demand and need that a consumer could have. Companies are willing to fund and promote these new ideas because they have proven effective in reaching huge target markets and filling a need. I bet if I told my parents ten years ago that I would be buying a car on-line, they would have checked my head. Now, it seems as though a great way to save time and energy, all the while finding what ever it is that you truly want.




Reflections:
Chapter four teaches us that the internet is a direct response medium, that allows interactivity more then any other marketing medium. Marketing has four characteristics (known as the four I's) that are described as being powerfully affected by the internet and its capabilities. These qualities are, Interactive, Information-driven, Immediate and Involving and have changed the way we do business.
Being Interactive allows marketers to initiate two way conversations or communications between the consumers and themselves. Being Information-driven allows marketers to inform consumers on mass levels, contacting and notifying them of new products, services or even changes to existing things. Being Immediate allows marketers to reply to consumers quickly and efficiently and is much more cost effective then trying to manage call centers or mail rooms. Getting consumers interested has become somewhat of a chore in todays heavily marketed environment, the internet offers a great way to get consumers involved with promotions and incentives. Combining brand marketing with direct response motivates consumers to act on what they have seen.
Front end and back end marketing are an important part of the marketing process. Front end activities are things that happen before or during a sale. Coupons for example are front end marketing. Back end marketing is everything that occurs after the sale, including fulfillment and customer service. It is unfortunate but Internet marketers have seem to forgotten the back end part of marketing. This is a result of not having to deal with consumers directly or in large numbers. This is a big deal because over time it will affect customer retention, and we are all aware of the 80-20 rule.
Direct response programs are a great way for marketers to track consumer trends and habits. The internet allows an advantage when it comes to direct response over traditional mass media in many ways. For one, its way more cost effective. Another plus is the fact that if it is not reaching markets in the way it was intended, it can simply be deleted or fine tuned. One way to conduct a marketing test is to do a A/B split where one group of consumers is divided into two groups. Different marketing is sent to the two groups and essentially seeing who reacts to what. This is a great way to acquire psychographics to better target your market, hoping to stick out from all the clutter.