Over the next 5 years, Internet Marketing, will see a lot of changes and rapidly as Internet, going through adolescence actually, will quickly mature and become a very useful tool for business.
Figure 1 (Gartner Group)
Now 13M PCs are connected (about 60M users) and the commercial on-line service represents £1.5 billion. Approximately 150 million people will be using Internet and 14 million people will be buying products and services via the WWW by the year 2000, which will represent $6 billion.
I firmly believe that the Internet will totally subsume "raw" data connectivity schemes, become the underlying foundation within and between corporations, and rise much higher level of true interactive computing capabilities
The promise and appeal of universal connectivity and access to people and information are overwhelmingly compelling and will continue to drive Internet growth (+ 10-15%/month) in a rapid upward trend (despite the Internet's actual flaws).
The Web will evolve from a passive publishing medium to an interactive computing environment that subsumes client/server and expands into transaction process, electronic functionality.
Figure 2 (Forrester Group)
 | By 1997, Web technology will be so persuasive and low-cost that end-user-driven deployment will be inevitable. |
| By 1998, the largest obstacles to commercial development of the Internet should be resolved (technical problems mainly). |
| By 2000, the Internet will become the "dial tone" of the communications world. It will bring shorter development and product life cycles. It will improve also our productivity. |
The Internet's broader impact will be a more subtle, widespread easing of communications. This trend will fundamentally alter the way companies create and disseminate information.
New businesses' opportunities will emerge and unexpected competition as the market will be worldwide.
The customer service requirements will be tougher. The response to inquiries should be faster. The access to complete information will become the norm. We will have conflict with the distribution channel. Some products will be ordered through Internet but not without rolling existing channel relationship.
It will be our basic communication tool. It is becoming it already. Internet provides lower-cost, more convenient and richer means to communicate with anyone who uses a PC. We will learn more about our customers. The Internet is the only medium where customers leave an electronic trail showing their interests and preferences. We can present ourselves now in a completely new way.
Figure 3 (Wood's Research)
This new medium offers us a channel to convey our messages, value and image. Customer support and information will be overhauled. This is not only cost saving; it is better for the client.
It will open new opportunity for us. We will have, a 24 hrs/days and 7-days/week low-cost service, worldwide accessible.
But with the new Internet technology which are emerging, we will be able to:
| Call a client in a foreign country at a local call cost (Internet Phone, Video conference) |
| Have a live customer support forum (IRC) |
| Download the latest up-date of the new product's operation system (drivers,..) through a secured Web site |
| Delivered our software through Internet to the customer |
| Offer the Web visitor to test products before to buy them |
It will cut international business cost and simply the sales and marketing costs. It is very easy to correct a spelling error on a Web brochure, not a paper one. We will react quicker against the competition.
The Web will fundamentally change and redefine the way we do business, in the following areas for business-to-business sales:
| Accelerating business processes |
| Creating transparent markets |
| Redefining market boundaries |
| Altering the basis of competition: "pull" marketing |
| Reorganising the workflow |
The business workflow process will be accelerated considerably by the use of electronic commerce. We will have to be able to keep up with this rapid pace in order to stay competitive. Old business channels will feel threatened, and we will need to give attention there and help old channels make the transition. From now, we have to face customers directly, including all the negative feedback that this entails. We will prepare ourselves to give customer service like never before; customers will become more demanding, and we will need to manage their expectations.
Markets will be penetrated much faster, and the first movers will be rewarded. The business process is being speeded up so that responsiveness will be required for the winners in terms of hours, not days. Suppliers will be appreciated by their responsiveness (in hours, not in days).
Internet and Electronic commerce will create transparent and highly competitive markets, where differentiation will be essential to survive. We will have to be able to communicate how we are different from our competitors. Here is a list of how we can differentiate ourself, as market boundaries are redefined:
| Easy access to world-wide product information |
| Direct comparison of features and price |
| World-wide payment |
| Global delivery |
| Customising |
| Global branding |
The lack of geographic limitations for electronic commerce redefines what boundaries are: prepare yourself to go global. We will no longer be limited by geography: we will have a global reach, thanks to logistic service providers (DHL, UPS). Products successful in one market can quickly be sold worldwide (ex: Amazon.com - http://www.amazon.com) .
Electronic commerce will turn the business world upside down. The business model is also changing, in that marketing is transformed from "push" to "pull": attracting clients and enticing them to make an order. "Push" marketing will be refused, and the marketing model will turn to responsiveness.
Customers will really become king, and will have to be treated accordingly if we want to stay in business. Customers will no longer accept fixed prices: even price negotiation will most likely come into electronic commerce more often than in the physical world in the past. Customers will also become aware quickly of product strengths/weaknesses and pricing, which are well known in the market, and can be quickly determined by forums and newsgroups. They will demand protection through all-included warranties, valid worldwide.
In the near future, a customer will use electronic agents to look for competitive products and pricing, and have the results within an hour sitting in his Email in-box or in his Web browser window. The ease of a customer finding other sources will mean that competition will intensify between suppliers: a faster market response will be required.
It will radically change our organisation. As it will be easier to communicate with this system, internally and externally, we will improve the quality of our work. We will have more time to analyse the information instead to look for it.
Internal communications will be simplified. We can forget incompatible computer systems or software, as it is now. We will simply use secured Web sites (Intranet/Internet) for posting workgroup information or keeping suppliers, distributors, and buyers informed.
Published in January 1997