FACTORS IN WEB MARKETING

The first step in effectively using a communication medium is to identify who is on the "listening" end of the pipeline. Until very recently, there was not much hard information about demographics on the internet. According to some extensive studies, about 1/2 of the net users are male and 1/2 are currently female. The ratio of female to males is actually higher than what was projected and as the usage factor of the net swings more to the home/hobbyist, the ratio between male and female should become more equal.

The largest single age group using the net is the 35-45 year old section (25%). The 18-24 & 25-34 year old groups each have a 12-15% share of the market---so it can be said that 18-45 year olds hold about 50-55% of the internet market.

Income levels of the average internet surfer are significantly above the national average. In short, at the moment, the typical internet user can be characterized as a young to middle aged adult with a healthy disposable income.

Using this 18-45 year old group as a primary market, some of the success stories relating to internet marketing become more understandable. It is generally held that goods and services successfully sold on the internet must be (A) unique or (B) trendy. People in this market segment are used to buying items such as T-shirts anywhere, but a Rush Limbaugh tie is both unique and trendy--hence a perfect item to be marketed in cyberspace.

Designer coffee or specialty wines are other attractive ego pleasers while high tech children's toys or youth oriented educational books are not "worth" the price (to the kid behind the computer screen). In other words, if you can get it at the mall, don't try selling it on the internet.

Another key factor in marketing over the internet is shipping costs. While the basic price of an item might be within the perceived value to the customer, shipping might make the item too expensive to warrant a purchase.

Methods used for financial transactions also affect market success. The internet is such an "instant" medium---that is to say you can instantly jump from one location to the next--to expect a customer to sit down and write a letter and then wait for the mail to fill an order is quite absurd. 1-800 telephone orders cut down on much of the waiting time and this system of communication is currently in favor due to the distrust many people have of sending a credit card number over the internet.

It is the general hope that some sort of secure net hookup or encryption program can be adopted so financial transactions can be conducted over the internet. When such a system is in place and tested, other forms of transactions should quickly fade.

The phenomenal growth of the web demonstrates how eager the market is to make the internet into an "interactive TV" complete with graphics, audio, and video-like motion. To fully accomplish this would certainly push the limits of the internet; but more to the point, it is an almost insurmountable problem for the telephone lines to which most web surfers are connected. Undoubtedly, some bright souls will find some work-arounds for many of the current problems standing in the way of full interactivity. Because of this, the internet marketer should keep a sharp eye out to take advantage of such advances. On the other hand, jumping into the high tech game too soon can be expensive and unprofitable.

Perhaps the most significant development in internet marketing is how quickly it has evolved into a true segmented market medium. Most new methods of communication appeal to the general mass market for an extended length of time. TV, radio, newspapers, magazines, etc. all enjoyed a lengthy period when whatever they had to offer was enjoyed by everyone. At a certain point, each medium began to specialize and meet the needs of select market segments. The internet on the other hand, has fragmented into specialized groups almost upon the conception of the system.

Marketers on the internet need to address the fragmented nature of the medium. The beauty of the net relates to the efficient grouping of people with like interests rather than the accumulated whole. Target marketing is the name of the game on the internet. Mass market techniques are for the most part ineffective and unwelcome.

It is the author's opinion that marketing on the internet is most effective when viewed as selling to many homogeneous communities. Find that community or communities which value what you have to offer and your product or service will sell provided the perceived value of the product is in line with the price (including shipping). Miss your mark at identifying an appropriate market and there will be no sale---literally.

A significant advantage of the internet absent from almost all other forms of mass communication is the ability to research potential markets with built in search tools. Marketers who ignore the internet search capabilities are loosing out on their greatest internet sales tool.

So, how are you going to structure your marketing strategy to make the internet work for you?