Marketing
on the Net
By Richard Thieme
Fish
Out of Water
One of the
inevitable consequences of spending hours on the world wide web
is that we internalize the structures of cyberspace. The way we
experience cyberspace changes how we think about the world.
We used to
say things like "his life is an open book," or "he spelled everything
out from a to zed." That way of framing the world had percolated
through our psychic processes every time we read a printed book.
We didn't even question the way those metaphors framed our reality.
They were so much a part of us, we took the frame for granted and
concentrated on the picture in the frame. But the picture -- its
shape, its dimensions -- were determined by the frame.
Now we find
ourselves internalizing metaphors from our experience of clicking
through cyberspace. When I hear someone typing at a keyboard while
they're talking to me on the telephone, they're "multitasking."
Although the word "broadcast" derived originally form how farmers
scattered seeds as they walked the rows in springtime, it became
synonymous with radio transmission. Now the Internet has backformed
"narrowcasting" from the word to mean targeting very specific segments
of the population.
This excursion
into semantics is fundamental to an exploration of doing business
on the Net. How we frame the world -- the shape of the containers
that hold our thoughts -- determine our actions. We don't see them
because they're like water to a fish. When the fish is thrown up
on the beach and begins using rudimentary lungs instead of gills
or stubby fins as legs, it becomes aware of the water in contrast
to the air.
We are all
like fish learning to walk on stubby fins in the rarefied air of
cyberspace. Anyone who wants to do business on the web these days
needs to have the courage to enter this unknown world and confront
how we are being transformed by this new technology.
The most successful
businesspersons in cyberspace will be samurai who have become supremely
conscious of who they are and how they operate.
Doing business
on the World Wide Web requires that we become aware of how it is
different -- as well as the same -- as doing business over the telephone
or face to face.
None of us
has all the answers to marketing on the Web. But as we share our
experience, we will find answers together.
It Feels Like
Cheating
A local school
district told me that the large corporations that hired their graduates
were pleased with every aspect of their education but one: the young
people knew how to think alone but didn't know how to work cooperatively
in teams. The virtual workplace requires cooperative teamwork, they
were told, and the teachers had better get busy showing them how
to do it.
How can they
teach what they don't know?
In my day,
we were taught to work independently because that's what teachers
knew how to do. My "intuitive exploration" of "cooperative learning"
was called "cheating" and got me a reprimand. Behaviors that used
to be condemned as a moral lapse are now celebrated as the wave
of the future.
The following
observations are islands in the clickstream. I invite you to share
your insights with me by email so I can include them in future articles
and turn islands into steppingstones to the far bank.
The Rate of
Change is Changing
Exponential
change is no joke. It means things are changing at a faster and
faster rate everywhere at the same time.
A financial
manager and investment adviser I know recently returned from a national
meeting. He said everyone felt the same way: "So much information
is coming into our computers these days that knowing what to do
with it is like trying to get a drink from a fire hose. We don't
even know what's important any more, and if someone tells us, we
aren't sure what to do with it."
A few months
ago I was called by a land developer who had heard me discussing
the Internet on a local radio program. He wanted to market time
share condominiums over the Internet and asked me to outline the
options.
My research
included searches of Internet sites and on-line services like America
Online as well as numerous conversations with marketing pros. As
I sat down to put it all together in a final report, I received
an urgent call from a local consulting firm.
They had been
asked by a software company to help them bring a web page builder
- a user-friendly HTML editor -- to market. They had just raised
about $US 10,000,000 in a stock offering and estimated that they
had two months to capture "mindshare" in the growing market of those
who wanted to build their own web sites. Other companies were developing
similar products and GIVING THEM AWAY FREE over the Internet in
order to hook people into their product as Netscape has done so
well. (As Bill Gates noted recently, there has never before been
a marketplace in which the primary products are given away free
in order to build a market for ancillary or subsequent sales.)
So I became
part of a team that dropped everything and used every approach to
marketing that we knew to get that software reviewed, bundled, downloaded
and purchased. At the end of two months they had built a niche and
were not -- for the moment -- in danger of going bankrupt. Some
lessons learned:
(1) Because
we did not have time to try different methods and evaluate their
effectiveness, we used every conceivable channel to market the product.
The most efficient feedback loop was still too long to enable us
to learn what worked and do it more and what didn't work less. We
had to try everything and bank our knowledge of what seemed to work
for the future.
(2) Only a
team of diverse people was up to the task. We were a virtual team
for two months, coalescing around a single task, then dispersing
again into the ether of cyberspace.
(3) Each member
of the team needed to be comfortable with ambiguity and a high degree
of anxiety because there was no way to know what we didn't know.
THE MUTUALITY OF OUR TEAMWORK GENERATED THE SECURITY WE NEEDED FROM
THE INSIDE OUT THAT ENABLED US TO BE EFFECTIVE IN RAPIDLY CHANGING
CIRCUMSTANCES.
An Internet
guru told me, "The most important knowledge I have is the knowledge
of what I don't need to know. I need to know where the knowledge
is and how to get it when I need it."
Once that software
project was out of the way, I returned to the report for those developers.
In the two
months that had elapsed, the relationship of online providers like
AOL to the Internet had changed so radically that the report I intended
to write two months earlier -- although current at the time -- was
obsolete. Microsoft, for example, had cancelled plans for the Microsoft
Network to compete with AOL, changing it into a site on the WWW.
Developers who thought they had a commitment from Microsoft were
left high and dry.
If all those
smart people at Microsoft had to turn their truck around in the
middle of the road, the rest of us had better get used to knowing
that we can't know what is going to affect our plans. Business news
is brimful every single day of new alliances among big players trying
to hedge their bets and cover their butts. We all have to do the
same thing.
Band-Aid the
Bomb
Another lesson:
The site the
developers intended to build was near an area in the South Pacific
where nuclear testing had taken place. Any net-savvy surfer using
search engines would find numerous sites dedicated to documenting
the history of those blasts and their consequences. Anyone using
the Net, that is, to explore vacation opportunities would encounter
some negative political agendas.
Marketing on
the Internet in this case meant a strategy for "brand defense" to
combat the negative spin of political controversy. That would not
have been essential in a world of print media in which information
was neither linked nor easily accessible.
Learning from
O. P. E.
When the World
Wide Web began to capture our attention, traditional print media
panicked and stampeded onto the Net. Newspaper articles reported
that newspapers were dead; books were written about the end of books.
Of course, more printed text shoots off our printers and fax machines
than ever.
Many moguls
who rushed to build web sites are now abandoning those sites. Why?
First of all, there were too many virtual newspapers and the audience
was still too small. Most of us don't want to read our newspaper
on a flickering monitor on the desk. Newsprint is still portable
and cheap.
Lesson: Every
new technology is used at first as if it is the technology it subsequently
replaces. The first motion picture cameras, for example, were set
up on tripods in front of plays in traditional proscenium arch theaters.
When Alexander Graham Bell was asked about practical uses for the
telephone, he thought it might be used to call ahead to the next
town to tell them a telegram was coming.
Most of us
are not going to be Bill Gates and build Microsoft. We need to step
back from that panicky feeling of being left behind and see the
big picture. Entrepreneurs need prudence as well as courage. Whatever
we can learn from other people's experience is money in the bank.
Global Means
Global
Many businesses
going on the web give lip service to "the global marketplace" but
still act local.
Most web sites
use English. We rarely find Japanese, German, or Spanish, the languages
of the biggest markets in the world. If we intend to market to a
global marketplace, we had better make it possible for non-English-speakers
to do business with us.
Awareness of
the global village percolates slowly through our habitual ways of
thinking. I am still surprised when I receive email, for example,
from a UN official who read my Japanese article about the relationship
of Japanese culture to Internet culture. He planned to be in Tokyo
and wanted me to meet him at his hotel for a conversation. I received
a similar invitation from the London office of Hill and Knowlton
to come to a meeting after work in a Kensington pub. They assumed
I was right around the corner.
I couldn't
make those meetings but I could initiate a conversation via email
about working together in cyberspace.
Lesson: the
global village is more than a metaphor. Our encounter with diverse
cultures can be as shocking as the effects of exponential change:
Again, we don't know what we don't know and most of the time we
don't even know THAT we don't know. So we need to use everything
-- other people, web sites, software applications like intelligent
agents -- to filter out relevant information and turn it into knowledge.
The only real
capital in the virtual world is knowledge, not information.
Lesson: Living
in the virtual world is more like networking than building a bunch
of talking billboards. Those who grasp that networked computers
facilitate communication, not just the dissemination of information,
will meet real people in those imaginary gardens and form real relationships.
Ultimately
the Internet is not about technology. It's about people.
The Wisdom
of Longinus
Some things
DON'T change.
A couple of
thousand years ago, Longinus was reflecting on good literature.
It must do two things, he concluded: it must teach and it must please.
Successful
web sites must be informative and/or entertaining or both. Information
must be provided up front to hook people into coming back again
and again.
The WWW is
littered with ghost sites. Often these sites were well designed
for their time. They consist of static text and images and dated
information. A year or two later, surfers who want java applications,
applets, the animation of shockwave, find them as stilted as stick
figures. Unless sites are updated to meet changing needs and tastes,
they die a lonely death.
Many businesses
budgeted for the initial costs of a web site with little thought
given to how much it cost to sustain the site over time. 75% of
all web sites are upgraded within one year. Only sites that provide
real value -- current and compelling information or genuine entertainment
-- will keep people coming back
. What Road
Do You Want to Take?
That's the
question the caterpillar asked Alice. She didn't know. Well, the
caterpillar said, where do you want to go? Poor Alice didn't know
that either. She only knew she wanted to go somewhere. So the caterpillar
told her to take any road. "They ALL go somewhere," he said.
If you intend
to develop a web site for marketing your product, ask yourself first,
what is your ultimate intention? Do not ask that question as you
sit alone at a desk with pencil and paper: use colleagues and associates
to brainstorm with you, even if they constitute a virtual board
of directors for only one session. If you don't know who to use
or how to arrange for a strategy session, let me know by email.
It can be done as easily in cyberspace as in your Capetown office.
Who is your
targeted audience? Increasingly sophisticated measures of hits and
clicks enable you to know exactly who is visiting your site, how
long they stay, what they look at and what they ignore. It is foolish
to pay high prices for an audience that surfs right over your ad.
How many click through to get information about your product? How
many contact you to learn more? How many didn't even realize they
were a target audience because they were learning so much from your
site?
Be Prudent,
But Get on the Train
The managing
director of Hensley Segal Rentschler recently told marketers at
FutureFocus '96 that the Internet will fundamentally change the
way they do their jobs. "Within the next few years," he said, "the
Internet will develop into the backbone of the industry and will
be an invaluable marketing communications tool for the remainder
of our careers."
A recent survey
conducted by Nielsen suggests that, compared with the adoption rates
for key technologies in the past, the Internet is entering the mainstream
far more quickly than analysts had expected. Check out a detailed
executive summary of the survey without charge at Commerce Net (http://www.commerce.net)
or Nielsen Media's web site (http://www.nielsenmedia.com).
Let's use the
net to gather information about the Net and also to partner with
one another. Let's use each other to do more together than any of
us know how to do alone.
1995
|