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Conference 7.286::digital

Title:The Digital way of working
Moderator:QUARK::LIONELON
Created:Fri Feb 14 1986
Last Modified:Fri Jun 06 1997
Last Successful Update:Fri Jun 06 1997
Number of topics:5321
Total number of notes:139771

3976.0. "Marketing Online? Forget it." by STAR::LOWERY () Fri Jul 07 1995 14:17

Everyone, especially including RONs   ;^)

Please consider the following magazine article regarding marketing 
via the Internet.  Certainly giving customers timely access to
information on Digital Equipment Corporation and its products is one
thing but "marketing" via the Internet is something else again...what
do YOU think? 

The following article was reprinted (with permission) from Target
Marketing, June 1995 Volume 18, Number 6.  Target Marketing magazine 
is a publication targeted at the direct marketing industry. 

--------------------------------------------------------------------
Marketing Online?  Forget it.

It finally hit me.  Direct Marketers who are currently besotted with 
the Internet are throwing away millions of dollars "getting ready for 
the future".

Why?

The process of marketing and selling is pro-active.  Marketers have to
go out and beat the bushes...stir people up...get them to act and to
respond...make them excited.  You do that by putting a catalog in
their hands ...offering a $10,000 line of credit with a 3.5%
APR...showing them a BMW and making them salivate for a test
drive...thrusting a crackling hot, wonderful smelling hunk of kielbasa
on a toothpick into their hands and urging them to take a package of
it home...offering a free makeover at the Elizabeth Arden kiosk.  To
move your merchandise, you must intrude yourself and your message into
the lives of your prospects.  By mail.  By phone.  By TV.  By space
advertising.  On billboards.  By skywriting.  By sampling. 

On the Internet or any other online service, the prospect has to do 
all the work.  You have to turn your on computer and physically spend 
time wading through what Bob Hacker called "a huge library with 2,500 
branches and no Dewey Decimal System.  How will people find you in the 
clutter."  Remember, people are basically lazy.  They get bored 
easily.  If 98 percent don't respond to a direct mail piece placed 
directly in their hands, what percentage is going to drop out of 
cyberspace with all of the chit-chat and irrelevance?

For all the mystique and alchemy that direct marketers like to 
surround themselves with, the process is still one of cold logic and 
common sense.

And cold logic says that forcing the prospect to be pro-active and go 
hunting for your product in cyberspace is 180 degrees apart from 
thrusting your offer into the prospects's hands, mailbox, newspaper, 
magazine, telephone or TV screen.

A new marketing concept that is 180 degrees from traditional marketing 
techniques simply will be - at best - a minor player in the media mix.

At least in my lifetime.  And probably yours.

(signed) Denison Hatch
         Editor/President
-----------------------------------------------------------------
Copyright 1995 Target Marketing/North American Publishing Company
All rights reserved.
Reprinted with permission from Denison Hatch, Editor/President

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3976.1Ugh ...NETCAD::THAYERFri Jul 07 1995 14:5022
	"To move your merchandise, you must intrude yourself and your 
	message into the lives of your prospects."

		No wonder I detest marketeers so much...


	"On the Internet or any other online service, the prospect 
	has to do all the work.  You have to turn your on computer 
	and physically spend time wading through what Bob Hacker 
	called "a huge library with 2,500 branches and no Dewey 
	Decimal System."

		This is exactly what I did when shopping for a
		new car a year ago. It sure beat trying to get
		real information from slimball car salesdroids.

		I am looking forward very much to "the new world 
		order".


				John
3976.2Me too.BICYCL::RYERDon't give away the home world....Fri Jul 07 1995 15:1413
I think this guy is all wet.  I, for one, am excited about being able to surf
the web for retail items.  the pc catalog (gopher://pccatalog.peed.com/) is
an excellent example of what's out there.  In one place, you can comparison
shop for anything you might want/need for your pc.  And I didn't have to look
through a dozen catalogs, or scan the adds in Computer Shopper trying to find
the best deals.  And, it's practically realtime, compared to printed
advertising.

I think the web is great, but I also realize that I'm not John Q. Public in
that I'd rather deal with an automated teller than a real one, because the
lines are shorter :-).

-Patrick
3976.3PADC::KOLLINGKarenFri Jul 07 1995 16:154
    It's also not true that there's no Dewey Decimal System.  The Web
    search programs that come build into Netscape, for example InfoSeek,
    work very well.
    
3976.4Depends on the market and customerWRKSYS::DOTYRuss Doty, Graphics and MultimediaFri Jul 07 1995 16:2754
    There are different markets, and people react differently.
    
    In the technical and computing market, there is a typical buying cycle:
    
    People go long periods of time when they are not in the market.  They
    are not planning to purchase anything, they have little interest, and
    they do not respond to marketing.
    
    They enter the first phase of the buying cycle.  At this point, they
    develop a need.  This is often triggered by needing new equipment,
    because the existing systems are limited, slow, or obsolete -- or
    perhaps because some money is available in the budget!
    
    At this point, they want to get current information on products and
    companies that may meet their needs.  They will purchase magazines,
    search out reviews, get (and read) brochures, etc.  This is a broad
    information gathering phase where they are seeking as many alternatives
    as possible.
    
    Next, they will start narrowing down the list.  They look for detailed
    technical information, start doing comparisons, and eliminate products
    from consideration.  They actively seek information.  The goal of this
    phase is to develop a short list (typically 3-5) of final candidates.
    
    The final stage is the buying decision.  A detailed technical
    comparison is made, pricing and other factors are considered, the
    decision is made, and a purchase occurs.  Benchmarking and active sales
    efforts occur at this point.
    
    After the purchase is made, they are no longer in the market -- go back
    to stage 1!
    
    Now, some caveats:
    
    1. Buying is an emotional process.  Facts and figures are often used to
    justify or rationalize what is essentially an emotional decision. 
    People buy from people and companies they like and trust.
    
    2. Technical people are typically data driven.  They collect
    information, analyse it, and make decisions based on it.  (Yes, there
    is a certain "dynamic tension" between points 1 and 2...)
    
    3. Technical people dislike marketing and sales.  They want the raw
    data, and they want to decide for themselves.  At least this is how
    they feel.  The actual result is that they respond much better to
    technical marketing than consumer type image marketing.
    
    Based on this buying cycle, the Internet is a superb vehicle for
    selling technical products such as computer systems.
    
    The original points are probably valid for consumer purchases in
    non-technical markets.  The Internet probably isn't a great vehicle for
    selling coke, clothing, or items that are essentially impulse
    purchases.
3976.5WHOS01::BOWERSDave Bowers @WHOFri Jul 07 1995 16:3715
    You're confusing marketing with merchandising. The marketer's job is to
    create demand for his product -- to make sure that when you go to look
    for a car you're favorably disposed to the Huppmobile. To the average
    marketer, the Internet seems about as efficient as putting up posters
    on back roads. He wants to get his message in your face. Like it or not
    that's what he's paid to do.

    This is a control issue, similar to the publishing industry's
    unhappiness with HTML. The layout guy's job is to control the
    appearance of the publication in every detail. HTML denies him that
    control, and he is not happy.

    It's fine for us techie types to say we like it better that way, but
    let's not forget we aren't exactly typical of American business or
    consumers.
3976.6I may be a little overenthousiastic on this but...HLDE01::VUURBOOM_RRoelof Vuurboom @ APD, DTN 829 4066Fri Jul 07 1995 16:4168
    Well, my data interprets a little different. Granted the Internet
    is not very everyone or every product but for computer related
    products at least my data is backing a trend that real marketing
    via the Internet is not just a possibility but a reality here
    today:
    
    Since our LinkWorks Web Server opened its doors to the general
    public (follows shameless plug: http://www.digital.com/info/linkworks)
    about 4 months ago we've seen an estimated 10000 visits around
    10-15% of whom will take the trouble to download a good sized
    document so we know we're getting the right people looking.
    
    On average I would say once a week we are getting a non-Digital
    prospect who indicates that they are currently trying to solve
    a problem (i.e. have money) to spend and having discovered
    and read up on LinkWorks via the Web think that this might be a 
    solution...we are also being approached about average once a week
    by a potential partner who has done his homework. In other words,
    these people research and _then_ contact us. No "Duhhh, what is this
    LinkWorks thing..." partner prospects.                      
    
    And how about this for a new phenomenon (of which this Notes conference
    gets the scoop :-): I have now seen at least 3 LinkWorks deals 
    which were preceded by about 2-3 weeks with intensive activity on
    the Web Server by that customers.
    
    And yet another insight on Web behaviour which is common to a 
    number of serious prospects: On Day X prospect accesses server,
    on Day X+1 prospect accesses server again and downloads document,
    on day X+5 prospect accesses server and downloads serveral more
    detailed documents. On day X+15 more intensive activity, sometimes
    other TCP addresses from the same company also. On day X+20
    a contact is made to us directly via the corporate email or
    I suspect to a local Digital contact. The above periods are
    estimates but I have definitely seen this 1-2-3 behaviour.
    
    Within the last 2 months we have brought over 15 countries online
    with local Web Sections (go take a look :-) and I have been told
    by local contacts that they have been contacted within a day of
    being on line. In fact we're now discovering that a worldwide
    virtual marketing team has suddenly come into existance because of this
    mechanism as the local countries gradually support their local
    sections.
    
    Forgive my enthousiasm but this thing really does make a difference :-)
    
    And once again we're breaking new ground (on a roll here :-): this
    week a Digital Partner has brought and will maintain a listserv for 
    a Digital Product (LinkWorks). Something I believe that no other
    partner has done before for any other Digital product.
    
    A listserv is a sort of world wide super readers choice for you 
    non-internauties. And (another shameless plug) if you want
    to subscribe send an email to: majordomo@iga.com.
    
    Put in the body of the email the following:
    
    subscribe linkworks my_internet_address
    
    For example,
    
    subscribe linkworks greyhawk@lower_mongolia.mts.dec.com
    
    My cut is that the guy is very wet indeed and they're probably
    dredging the swamp for his corpse right now :-)
    
    re roelof
    [LinkWorks Marketing if you hadn't guessed :-]
3976.7Notes collisionWHOS01::BOWERSDave Bowers @WHOFri Jul 07 1995 16:412
    .5 should have said "re: .3".  I've no argument at all with .4
    
3976.8Remember? Different strokes for different folks...POBOX::CORSONHigher, and a bit more to the rightFri Jul 07 1995 17:2629
    
    Geez, my name gets brought up in the strangest of circumstances. A
    swamp? Not my body. Silk sheets, maybe. Anyway..
    
    Internet marketing for networking products, services, unlisted numbers,
    etc. works. Period. End of story.
    
    Internet marketing for consumer packaged goods, luxury cars, and land
    in Florida is a waste of money, etc.
    
    Marketing, to remind the base noter, is the *ART* of going to where the
    buyer is and making said holder of $$$ seek to buy. As I've said
    before, sales is the *SCIENCE* of causing said buyer to actually give
    you the $$$.
    
    Having gotten that off my chest (how did I get wet, Roelof?), the fact
    is what Roelof's group is doing is the wave of the future for companies
    like us. It needs to be funded, integrated into focused campaigns (ad
    in PC Week says "We aren't going tell you nothing about LinkWorks, YOU
    GOT TO DIAL http//etc."), sales folks around the world need to get mail
    that says "Hairydave @ xxx.xxx" hit the LinkWorks http page for the 3rd
    time in two weeks yesterday start a dialogue with this guy. You get the
    picture.
    
    Once again, does Digital????
    
    
    		the Greyhawk
    
3976.9More ReflectionsHLDE01::VUURBOOM_RRoelof Vuurboom @ APD, DTN 829 4066Sat Jul 08 1995 10:1530
    Greyhawk, i'm in full agreement and the note span was a little too
    great: I was referring tothe  guy in reply .2 and not to your esteemed
    self...never would I refer to the illustrious Greyhawk as "wet" 
    - some other choice terms perhaps but not wet :-)
    
    The main reason I initiated Internet mechanisms for LinkWorks around 8 
    months ago was my expectation that the traditional (and overhead heavy)
    field channels to the marketplace were going to break down rapidly
    particularly in the area of presales. The only place I went off course 
    is that it happened even faster than I expected.
    
    Certainly Greyhawk is right that these aren't active marketing
    mechanisms but when marketing budgets have been reduced by 60,70
    and 80% then active marketing cannot be your number one priority.
    For those groups who are in these back to the wall situations (and
    how many aren't) these mechanisms may mean the difference between
    staying afloat or going under. In any case our problem right now
    is to effectively exploit the business that is being offered us
    out of the blue so developing active marketing programs is not
    our number one issue.
    
    
    The one bright side is that these situations help you get out of
    the traditional ruts. We are now providing perhaps 5 times as much
    market info about our product, 5 times faster to the marketplace
    with 1/3 the number of people than a year ago. That has to count 
    for something somewhere.
    
    re roelof
    
3976.10Sounds like one heck of a great idea here...POBOX::CORSONHigher, and a bit more to the rightMon Jul 10 1995 00:3515
    
    	Apology accepted, etc.
    
    	Now to all you marketeers out there - how 'bout it?
    
    	Can you do something similar to Roelof's LinkWorks home page, etc.
    
    	I, for one, wouldn't mind seeing something on Alpha/Windows NT
    	server and Why Digital? Also maybe a something on the PC Utility
    	(hello, MCS...), and our Networking products and services.
    
    	Anything is better than nothing, folks. Get the message...
    
    
    			the Greyhawk
3976.11<Blush> <Coy Wave of Hand>HLDE01::VUURBOOM_RRoelof Vuurboom @ APD, DTN 829 4066Mon Jul 10 1995 08:5846
    Now (preening feathers) I don't want to make this look _too_ much
    like its _only_ me thinking up all these brilliant things. There
    are actually a number of similar Web Servers (InfoCenters) that
    have come on line in the last couple of weeks alone:
    
    This is the current list:
    
         Internet InfoCenter 
         Multivendor Customer Services InfoCenter 
         Mobile Software InfoCenter 
         Distributed Computing Environment InfoCenter 
         Systems Integration InfoCenter 
         OpenVMS InfoCenter 
         High Performance Computing InfoCenter 
         LinkWorks InfoCenter 
         POLYCENTER InfoCenter 
         Alpha Software Developers InfoCenter 
    
    
    You can access these sites by going to the InfoCenters Section on:
         
    	http://www.digital.com/info/quickindex.html
    
    or selecting InfoCenters from Digital's home page at
    
    	http://www.digital.com
    
    From the contacts and questions I get I know a lot more people
    are thinking about doing something similar. Still, not to be too 
    modest, we are pretty much unique in the international (i.e. specific 
    country sections) character of the LinkWorks Web Server as well as 
    using a listserv to provide additional support. Also we differentiate
    ourselves in the sheer amount of info that we make available: somewhere
    close to half a thousand documents and files logically distributed
    on 6 Web Servers (1 on the West Coast, 1 on the East Coast, 3 in 
    Germany, 1 in Australia). If you include all available info on LinkWorks
    (e.g. press articles) then I suspect that the number of Web Servers
    containing LinkWorks info jumps to around 10. These are all tied in
    to one logical whole.
    
    Finally, we have chosen a document format that is well accepted 
    _externally_ (PDF) to be our standard document distribution format both 
    internally and externally. We are deliberately focussed on removing the 
    difference barriers between internal field and external partners/customers.
    
    re roelof
3976.13RIOT01::SUMMERFIELDI am Number 6Mon Jul 10 1995 13:1212
    re .12
    
    I think you'll find that his email address is
    
    HLDE01::VUURBOOM_R
    
    Not
    
    HLD01::VUURBOOM_R
    
    hth
    Clive
3976.14Another Data PointHLDE01::VUURBOOM_RRoelof Vuurboom @ APD, DTN 829 4066Fri Jul 14 1995 12:4618
This came in yesterday from a US Western Region Sales Rep:
    
We are close to success at large company here in Southern Cal.

They are a Digital customer and were looking activly to pilot workflow 
solutions.  They ONLY found out about linkworks on the WEB and we joined 
the evaluation at the last posible moment.

At this time it is likely to generate hardware and software worth $400,000 
to $1,000,000.  This would not have happened in the west due to very little 
visibility to linkworks.  (I would like to fix this but that is for another 
memo).

Thanks for providing this.  It is enhancing our credibility with partners 
and potential linkworks VAR's that I am calling on.
    
    
    re roelof
3976.15Nice work!DPDMAI::EYSTERLivin' on refried dreams...Fri Jul 14 1995 14:161
    
3976.16Nice work...butDELNI::M_FORDTue Jul 18 1995 17:117
    Nice work!!!
    
    The WEB may solve some of our marketing problems by providing one more
    source for getting the word out about Dec's products. Probably a good
    one in that our customer is probably a technical person. But I have to ask
    are we still allowing engineering to build a product then telling the
    marketing people now here's a great product go find a market for it?  
3976.17CuriousHLDE01::VUURBOOM_RRoelof Vuurboom @ APD, DTN 829 4066Tue Jul 18 1995 23:587
>    But I have to ask are we still allowing engineering to build a product 
>    then telling the marketing people now here's a great product go find a 
>    market for it?  
    
    Is there a particular reason for asking this?
    
    re roelof
3976.18Good product, low visibility?ARRODS::HEWITTCComms=tin cans+wet stringFri Jul 21 1995 09:129
    re -1
    
    I would suggest that the reason for asking the question is the same one
    I ask myself w.r.t. Linkworks, i.e. we have a great product that does
    not seem to be actively marketed (in the U.K. anyway)!
    
    rgds
    
    Colin.
3976.19Good product, low marketing budgetHLDE01::VUURBOOM_RRoelof Vuurboom @ APD, DTN 829 4066Fri Jul 21 1995 18:4720
>    
>    I would suggest that the reason for asking the question is the same one
>    I ask myself w.r.t. Linkworks, i.e. we have a great product that does
>    not seem to be actively marketed (in the U.K. anyway)!

    Active marketing means money. Digital does not allocate serious
    marketing money for software as far as I know. This is yet again
    just a replay of the "Are we in the software business?" question.
    
    Yet, all things considered, LinkWorks is possibly in better shape
    marketing wise than many other software products within Digital and
    LinkWorks visibility is slowly but very definitely increasing. For
    example, just come out in the August 1995 issue of the UK (!) magazine
    PC Magazine is a 40 page (!) review on 5 groupware/work group products
    Lotus Notes and LinkWorks take top honours (Lotus: Editor's Choice,
    LinkWorks: Highly Recommended). So, Colin, go down to the store tomorrow
    and buy your copy :-)
    
    re roelof