My own two cents My own two centsAs someone who has looked hard and close at these issues, I would like to
throw in my own two cents. First, marketing on the internet, particularly via
WWW, presents a unique opportunity to sellers of goods and services: namely,
it removes the "place-based" nature from the transaction. As an example,
there is retailer nearby that sells homeopathic & holistic stuff. Currently,
their sales are limited by their location. Someone has to be physically near
the store to purchase from them. They can place ads, and send catalogs, but
these are relatively high-cost alternatives. If the opt to set up shop on the
net, they remove these limitations.
For anyone selling goods or services that are not location-based, this
concept is ideal. If, as a seller, I don't have to physically be where the
transaction takes place, then my potential market becomes everyone who might
be interested in my goods, versus everyone interested in my goods who also
lives close by.
As for the pricing issue, that will evolve naturally, through market forces.
The idea that pricing online has to be less than full retail is flawed.
While that might attract a buyer, it is only one possible enticements to
doing business. Another example: There is a local (regional) record store
chain nearby. Again there sales are limited by their location. This is where
the concept of a chain comes from; replicating a presence in another location
to increase the set of possible purchasers by having more "surface area".
Anyway, this chain will be establishing a Web site to do business.
Currently, they do not plan to discount beyond their current pricing (however
this may change through natural market forces). They, instead, will offer
other value-add enticements: convenience of inventory searching across
stores, concert dates, on-line clips, etc.
I also would like (hopefully) to start another conversation. I am the
architect of Bell Atlantic's initial Stargazer interactive TV system. I
designed, and my company built, the physical network (servers, transport,
clients, etc.) as well as designing some of the software. As we see the
emergence of cable modems, the coming of interactive TV, etc. I am interested
in the convergence of the net and interactive TV. Will the net be the initial
content on interactive TV, or one of many choices? Will smoother shopping
and browsing via a handheld remote from the couch be more enticing than
sitting at a keyboard and navigating the Web with a mouse? Will the Web be
incorporated into, and become navigatable through interactive TV (I believe
so)?
I would be interested in any and all thoughts. BTW, this is my first post
here; feel free to let me know if I am doing something improperly.
Michael Ullman
Vice President, Iconix
(301)-718-3459 W