Marketing_lessons_from_E_Failures

Marketing_lessons_from_E_Failures - (086-097)E-launch v4.5...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Marketing lessons from e-failures Vittoria Varianini is a principal in McKinsey’s London office, and Diana Vaturi is a consultant in the Milan office. Copyright © 2000 McKinsey & Company. All rights reserved. hen electronic commerce was young and the outlook was rosy, it seemed that the basic rules of marketing could be cast aside. The most important thing was thought to be a speedy launch to grab a share of the market space. ProFt wasn’t a near-term, or even a medium-term, goal. The aim was to get as many visitors as possible to your site, on the assump- tion that this would, at some stage, translate into proFts. Today that strategy is in tatters. Business-to-consumer (B2C) Internet businesses are hemorrhag- ing money. Since so few of them appear to have found the key to success, investors—for the time being, at least—are wary of backing new ventures or providing second-round Fnancing to the early movers. The second wave of B2C businesses—many of them set up by incumbents slower off the mark and only now planning an e-launch—have the luxury of learning from the pioneers’ mistakes. Although no one can yet claim to proffer universal truths about e-marketing, it is clear that many of the basic elements of the traditional marketing process still hold good. So why have so many companies failed to follow this basic process? One of the main reasons is the speed with which the e-marketing process unfolds. That speed gives ELECTRONIC COMMERCE 86 Vittoria Varianini and Diana Vaturi What marketing knowledge is specifc to launching an e-business? Knowing when you can and can’t cut corners, knowing what you have to know, and knowing that you don’t have to know everything beFore the launch. W
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
SHAKIROV
Background image of page 2
rise to difficult trade-offs. When you consider how to make them, the oldest of marketing principles remains the best guide: don’t lose sight of your cus- tomers and their needs. You can’t make sensible trade-offs if you don’t have a clear idea of what customers really value. Snares of e-marketing In the off-line world, a successful marketing process is well understood. First, identify customer needs and de±ne a distinctive value proposition that will meet them, at a pro±t. The value proposition must then be delivered through the right product or service and the right channels, and it must be communicated consistently. The ultimate aim of the process is to build a strong, long-lasting brand that delivers value to the company marketing it. All this remains true in the new world of e-marketing. But certain characteristics of on-line marketing, though by now well recognized, fre- quently trip up e-businesses. A much shorter time frame Speed is important in the launch of an e-business because the technology and competition move so fast. Unless you are actually running an on-line business, it is hard to compete with companies that are learning on the job.
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 12

Marketing_lessons_from_E_Failures - (086-097)E-launch v4.5...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online