Re: Re[2]: Pricing Strategies, was directories

Richard Layman (rlayman@cap.gwu.edu)
Fri, 9 Dec 1994 22:22:26 -0800

I'd say it's cheaper to be analytical than it is to fall flat on one's
face. For example, had the U.S. Mint done some market research, they might
have (1) made the Susan Anthony dollar bigger than a quarter, and (2) dropped
the dollar bill, (3) in favor of the $2 bill, and (4) saved the country
some money. But they didn't, costing the country money.

This example might not have a lot to do with the Internet, but shows the
relevance of market research and market segmentation and _market thought_
to marketing questions

You're not the first to state that online/electronic commerce is merely
another marketing _channel_. (I get frustrated, myself, when people don't
recognize this, and fail to apply basic direct marketing analysis.) The
reason it's significant is when new channels develop (or similar exogenous
shocks, such as Windows over DOS, just ask Word Perfect or Lotus), they
provide opportunities for players that don't necessarily have significant
investments in business-as-usual or at least are willing to risk change or
are completely new to the field.

That your girlfriend's stereo didn't come from either Circuit City/Online
or Best Buy/Online and more cheaply besides illustrates this point. Given
that Best Buy's stock dropped big time in the last couple weeks because
earnings aren't maintaining, what do you think your purchase
communicates about their ability to maintain and build future earnings?

Richard Layman
Computer Television Network
rlayman@cap.gwu.edu