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Contextual Marketing: The Real Business of the Internet
The painful truth is that the Internet has been a letdown for most companies--largely because the dominant model for Internet commerce, the destination Web site, doesn't suit the needs of those companies or their customers. Most consumer product companies don't provide enough value or dynamic information to induce customers to make the repeat visits--and disclose the detailed information--that make such sites profitable. Instead of trying to create destinations that people will come to, companies need to use the power and reach of the Internet to deliver tailored messages and information to customers. Companies have to become what the authors call "contextual marketers." Delivering the most relevant information possible to consumers in the most timely manner possible will become feasible, the authors say, as access moves beyond the PC to shopping malls, retail stores, airports, bus stations, and even cars. The authors describe how the ubiquitous Internet will hasten the demise of the destination Web site--and open up scads of opportunities to reach customers through marketing "mobilemediaries," such as smart cards, e-wallets, and bar code scanners. -
Extend Profits, Not Product Lines
In the last 10 years, products have proliferated in every category of consumer goods and services, and the deluge shows few signs of letting up. Most companies are pursuing product expansion strategies--in particular, line extensions--full steam ahead. But more and more evidence is indicating the pitfalls of such aggressive tactics. The strategic role of each product becomes muddled when a line is oversegmented. Also, a company that extends its line risks undermining brand loyalty. Some companies, such as Procter & Gamble, Chrysler, and a leading U.S. snack foods company, have discovered that a carefully focused and well-managed line can increase profits and sales volume. John A. Quelch and David Kenny describe how marketing managers can sharpen their product-line strategies by improving cost accounting, allocating resources to popular products, researching consumer behavior, coordinating marketing efforts, working with channel partners, and fostering a climate in which product-line deletions are not only accepted but also encouraged.