Written by B.L. Ochman

Continued from page 1

The failure of dot.com advertising showsrepparttar importance of bringing in PR people who can think strategically, Ries says. "Strategy may not berepparttar 119122 strength of traditional PR firms. Many of them are totally focused on getting publicity inrepparttar 119123 media. But getting coverage is not what it's about. They even measurerepparttar 119124 value of a story byrepparttar 119125 amount of money it would cost to advertise in comparable print inches or minutes of air time. That's ridiculous."

For example. Ries explains,repparttar 119126 introduction of New Coke is said to have gotten over a billion dollars worth of publicity butrepparttar 119127 product was a complete failure. "The PR firm should have told them they were crazy to mess withrepparttar 119128 formula forrepparttar 119129 most successful soft drink in history. From a traditional PR point of view I'm sure it looked like a plum of a story, but strategically it was a disaster. The best strategists don't take what a client says they are going to do at face value. They question name, price, distribution, and slogan. The best PR strategists would have told them not to launchrepparttar 119130 product."

Good strategy will give way to better business models that will change withrepparttar 119131 times. Adapting torepparttar 119132 Internet age doesn't necessarily mean you need to launch a web site, Ries says, but you may need to changerepparttar 119133 way you do business. He predicts it will be 50 years beforerepparttar 119134 full impact Internet-fueled change is fully understood.

BUSINESS MODELS MUST CHANGE Ries rails against bricks and mortar companies trying to become bricks and clicks companies. Putting an Outernet company online dilutesrepparttar 119135 brand, he maintains, and that's a sure recipe for failure. A far better strategy for changing withrepparttar 119136 times is to giverepparttar 119137 online venture a new name or a new function.

For example, he says, Home Depot has a low price strategy in their stores. Their Internet strategy is to warn suppliers that if they catch them sellingrepparttar 119138 products onrepparttar 119139 Internet they will drop them, Ries notes. "They're in a squeeze because suppliers could make more selling their products online."

In order for both Home Depot and its suppliers to thrive, Home Depot could shift its store strategy from price to a more service-oriented approach, perhaps giving classes in plumbing and carpentry. Then they could launch a web site under a different name, andrepparttar 119140 suppliers would be able to sell to Home Depot and through their own Web Sites.

Low price isrepparttar 119141 driver inrepparttar 119142 Outernet, Ries maintains, but that will change. Research shows, he notes, thatrepparttar 119143 Number One reason people give for buying in retail stores is price. Butrepparttar 119144 Internet soon will offerrepparttar 119145 best buys andrepparttar 119146 Outernet will be forced to make great service its main selling strategy. There is a high end, but it's a tiny share of market.

"The Number One retailer in America is Wal-Mart. Their theme is 'we sell for less.' Because ofrepparttar 119147 Internet Wal-Mart could potentially be in trouble strategically. They have to move toward service because Internet companies will be able to sellrepparttar 119148 same products for less money because as a result of their lower overhead."

INTERNET CAN'T PROVIDE A HAND SHAKE Observers say that many shoppers will userepparttar 119149 Internet for research but make their purchase at an Outernet store. Ries concurs. The consumer's ability to get instant price comparisons onrepparttar 119150 Internet will force most Internet retailers to have a price orientation.

"If all you want isrepparttar 119151 low price, you have to go torepparttar 119152 Internet. The Internet can't provide one thing that people still want: to touch and tryrepparttar 119153 product."

A recent study byrepparttar 119154 London-based by Economist Intelligence Unit (EIU) drewrepparttar 119155 same conclusion. It reported that instead ofrepparttar 119156 Internet crushing traditional dealerships, car buyers are likely use Web sites for finding information, but not for completing deals.

Projections were that 60 percent of car sales would be made overrepparttar 119157 Internet by 2005, says Ian Robertson, director ofrepparttar 119158 EIU's automotive group. In reality,repparttar 119159 report shows people usingrepparttar 119160 Internet to gather information and intelligence on prices, but to concluderepparttar 119161 deal they are still searching forrepparttar 119162 reassurance of that traditional handshake you can't find overrepparttar 119163 Internet," Robertson told Reuters.

Some may insist that Internet businesses will provide low price, convenience and service. Others will note thatrepparttar 119164 trend toward one-hour delivery by companies like http://www.kozmo.com will addrepparttar 119165 element of instant gratification now missing fromrepparttar 119166 online experience.

To those we say: Ignore Al Ries at your own peril.

B.L. Ochman is president of whatsnextonline.com, a full-service marketing agency that builds global traffic and sales for Internet businesses. Subscribe to our weekly marketing tactics newsletter, What's Next Online, at http://www.whatsnextonline.com 212.385.2200 BLOchman@whatsnextonline.com

"Will It Be FREE Tomorrow?"

Written by A.T.Rendon

Continued from page 1

However, withrepparttar recent demise of so many dot.com players,repparttar 119121 pendulum is attempting to swing inrepparttar 119122 other direction.

This week another major player has announced that their once free service will no longer be free as of August 6th. If you have a list hosted on ListBot, http://www.listbot.com/, you will either need to make new arrangements to get it hosted by someone else or get ready to hand over around $150 per year.

What was once free yesterday may no longer be free tomorrow.

Consideringrepparttar 119123 need to become profitable online,repparttar 119124 trend is understandable. However, these dot.coms that are charging fees must keep in mindrepparttar 119125 free nature ofrepparttar 119126 Internet and not ignorerepparttar 119127 fundamental nature of that concept.

Yahoo, http://www.yahoo.com/, is an excellent example of a dot.com that began to charge fees but not for it's core service of search engine directory use.

Yes, if you want preferential treatment in getting listed on Yahoo you need to hand them almost two hundred dollars forrepparttar 119128 privilege.

And, yes, they are "selling" you something on every web page that comes up withrepparttar 119129 results of your online search.

It paysrepparttar 119130 bills and still allows them to keep their original service free.

A compromise must be reached otherwise those faltering dot.com's and any Johnny come lately will find that in order to keeprepparttar 119131 good will of their customers and potential customers, they must be given an incentive merely to visitrepparttar 119132 web site.

Otherwise they will look elsewhere to still find it free.

A.T.Rendon is an entrepreneur and published writer. Subscribe to FREE Business Classifieds Newsletter & receive FREE online access to our Password Protected "FREE Submit To Over 2.6 MILLION FREE Ad Sites!" mailto:subscribe_fbcn9@emailexchange.org Visit us at:http://emailexchange.org/?articles

    <Back to Page 1
ImproveHomeLife.com © 2005
Terms of Use