OfficeOnWeb Building
Suite 100
Brief discussion of web marketing and the true costs

OfficeOnWeb Technologies
PO Box 1115
27902 Meadow Drive, Suite 370
Evergreen, Colorado 80437
(303) 674-6900 ------- FAX Call if needed
Toll free: 1-800-522-8435

Web Marketing

Whether you have a small business, are just beginning one, or have a large corporation, the web is a place that you should have a presence. Some of the reasons are:

• It is one of the fastest growth markets available today. People cannot even keep track of projections. According to a 1996 estimate, the world had almost 20-million people on the web and by the year 2000 we were to have about 60-million. In the April 1997 estimates, it was claimed that 47-million people now had access to the world-wide-web. By December 1997, the count is nearly 80-million. Access is growing by millions every month. Latest estimates are we will have access of over two hundred million by the year 2000. (This estimate was 100-million in April 1997.) Even if these figures are overstated, the rate of growth and potential remains staggering.
  
  
• It is a purchasing market. Between 6 to 10-percent of those with access purchase products through that access. We use the power of the computer search to find what we want and then comparison shop from our home or office desk. No longer do we need to travel through the countryside looking for that one item. We go to a Internet search engine which leads us to a mall or office. We then order, usually at a discount, obtaining delivery within days.
  
  
• It is an international market. The more remote the site, the more valuable the shopping capacity and income potential available through the web. Australia, United States, Europe, Africa and more are no further away in the electronic world. If they have the product we want, the use of credit cards and immediate shipping make it easy to complete the transaction.
  
  
• It equalizes the playing field. A large company can afford to make a web-site a little fancier, give more options, make a larger product base available, and have a local shipping site. However, that is about it. A small web site business can meet almost all of this. At present, a small business can advertise on a very close to equal footing with a large corporation. (Push technologies may change this. That is one reason why they are promoting it. It is also a reason to get in the ground floor now.)
  
  
• It reduces overhead costs and improves customer access. The days of the multitude of small product oriented businesses situated in a local area may be numbered. The reason for this is access, overhead, and the ease of search capabilities on the Internet.
  
  
  • Access. Unlike a physical storefront, access on the web is almost never a problem. That is because the web site is always open for business. Midnight or noon, customer or store located in the United States or Japan; it means nothing. In a physical storefront, some closure of the store is usually necessary. The cost and complications to attempt round-the-clock access for the customer usually make such operations unprofitable.
    
    
  • Overhead. The rent, utilities, and stocking costs of a web site is nothing compared to a physical storefront site. A small shop has to keep the doors open and be there when the customer comes in the door. The customer must travel to the store, have access to the store and staff operating it, and upon finding a product, believe it has sufficient worth for them to purchase it. If they know of a discount place that is convenient, they may go there to buy. When this happens, the business owner just paid overhead to sell the product for someone else. The rental cost to keep the "doors" open on a web site store for a full year is usually less than a single month's rent at a physical storefront. The cost of utilities, stocking, and maintenance for a web site business are similarly disproportionate. This lower overhead helps the customer too. Since the retailer's overhead costs are less, they can afford to sell at a reduced price. Consumers understand this and are increasing the number of purchases they make on the web.
    
    
  • Search Capabilities. The web is completely searchable for both product and price. Today, for some business transactions, if you are not on the web, you are not in the running for purchase. This phenomenal change in purchase habits is going to increase. The impact of this is best served by a real-life example.

    In 1996 a major corporation suddenly determined that they would obtain a tax advantage by purchasing some products before the end of their calendar year. They had about two weeks to decide what products were available, how the product capabilities and limitations would fit within their long-term strategy, and purchase the products. That was a tough job. The typical purchase cycle for their corporation was more than a month. Thus, the survey of the market had to be done fast, and it had to be done right.

    They did it almost completely through the web. Products were researched, priced, and delivery times were totally investigated by web. Businesses that did not have a web site were not even contacted. The only personal contact was after product and company selection was made. This major purchase was completed within a week and the products arrived before the end of the calendar year. How did they do it?

    1. Printed advertisements (magazine, mailings, etc.) immediately available were examined, company's with potentially acceptable products listing web site addresses were noted along with their web-address
    2. Using keywords, search engine queries were made of the web for additional prospects
    3. The web sites of companies appearing to have the best potential for providing the needed products were visited
    4. Web site pages from companies containing enough web site descriptions of the products, descriptive price sheets, and delivery times were printed
    5. Corporation staff reviewed the results and selected a product and supplier for recommendation to management
    6. A salesperson was called to verify the listed availability, price, and ordering information shown on the web site
    7. After confirmation, the staff briefed management and a purchase of the products from the recommended supplier obtained through web site research was authorized
    8. The salesperson was contacted and the actual order was placed (the company could have ordered it off the web site but chose to place the actual order with an actual person)

    This example is a small part of what the future holds for businesses. Businesses with immediate and easy access, complete product descriptions and delivery information, and ability to assure that the information attained (pricing, delivery, etc.) was correct, have the competitive edge. The web is the most economical means to provide these features. Therefore, if your business is without a web presence, it will be (or may already be) severely disadvantaged.

It helps you compete. With the thousands of web site business opening up, even an existing storefront business needs to have a web site. Think of it as the branch office, the main office, support office, sales office, or whatever adds to your competitive edge. For many businesses, they probably need to obtain a web site presence as much or more than they need to place a yellow page advertisement.

It helps you market. A web site is a good way to let people know about your business and what the it offers them. A web site often costs less than an advertisement in a local paper and can reach many more. It is an electronic version of the phone company's yellow page advertisement in a world-wide book. People have to pass by your physical location, and may not notice it. The amount of visual advertising space and time you have to reach them is limited. In a web site, when they visit it is usually because they asked, in some form, about the services and products you offer. You can tell them more and meet their needs better. People visiting your physical location may never stay long enough to really learn about your business. A web site offers both your customer and you another opportunity to get acquainted.

OfficeOnWeb Technologies
PO Box 1115
27902 Meadow Drive, Suite 370
Evergreen, Colorado 80437
(303) 674-6900 ------- FAX Call if needed
Toll free: 1-800-522-8435