Important Announcement #10
DATE: November 14, 1995
TO: Industry Colleagues And Friends
FROM: Stiernberg Consulting
SUBJECT: Internet Strategies, Trends, And Latest News!
More Big News: This is to share some ideas and update you on activities since Important Announcement #9 was sent in July 1995.
Welcome to the Web!
The industry buzzwords for 1995 have focused on the Internet: Web sites, browsers, search engines, digital audio and video on demand, online services, Windows 95, hypertext, and Net-based business. The list goes on and on, as does the publicity.
Use of the Internet and online services like America Online, Compuserve, and Prodigy has grown dramatically. World Wide Web access by U.S. households is projected to grow from under 2 million users in early 1995 to over 40 million by the end of 1999! The study, conducted by research firm Jupiter Communications, also predicts that hundreds of millions of dollars of business will be conducted over the Internet: shopping, banking, investments, and other transactions. That's in addition to the current popular applications like e-mail, research, file transfers, and entertainment.
Three Internet Business Myths
As a business person, you are increasingly exposed to the facts and fiction of the Internet and its potential as a marketing tool. Consider the following "Internet Myths".
Myth 1. "The Internet offers free advertising space." The reality is that it is not free. There are expenses associated with computer hardware and software, site design and programming, access and telecommunications usage, and maintenance. Further, that does not include the cost of notifying customers that you have an Internet presence.
Myth 2: "Set up a Web site, and the world will beat a path to your door." The reality is that posting information on the Internet is just as potentially risky as any other type of advertising or promotion. Just because you have a site or page does not guarantee that customers will 1) visit, 2) receive your business message, and 3) ultimately buy your product or respond to your request for information.
Myth 3: "The World Wide Web will put the online services out of business." The reality is that the online services are growing quickly and will continue to play an important role in the development of the Internet. Most new users first experience the Internet through one of the online services. This is a low risk, cost effective way to experience "net surfing" before taking the plunge and adding an ISDN line (that's another whole newsletter topic...).
In planning your company's use of the Internet and World Wide Web as a marketing tool, you can benefit by addressing several key strategic questions. Is your marketing message suited to effective online communications? Are your target customers equipped to access your site? What else is going to "give" in your marketing plan in terms of budget or staffing emphasis?
Faxback Survey #10: What Is Your Internet Strategy?
The trend is strongly in favor of the Internet and World Wide Web as a multimedia marketing vehicle. Businesses ranging from record labels and movie studios to accounting firms and brokerage houses already have web sites. The list grows daily in size and diversity. What are your plans? Do you use electronic mail over the Internet? Have a Web site already? Planning one? Don't know what to do?
Your feedback on this topic is valuable. Please respond via Faxback Survey #10 enclosed. Simply make a few notes and fax or mail as indicated. Results of the survey will be announced in Important Announcement #11.
Survey #9 Results: We Have Another Winner!
Thanks to those of you who responded to Faxback Survey #9. Eighty six per cent of those responding said that they were good at managing information or only a little behind in reading and processing of periodicals. The same number (86%) use a personal organization system and virtually all respondents have experimented with a variety of methods to conquer information anxiety.
The winner of the book Information Anxiety and the $25 American Express Gift Cheque is Tony Catalano. Tony is Vice President and Group Publisher at Hachette Filipacchi Magazines. Congratulations!
See You At Upcoming Trade Events
We will be attending upcoming industry events and would like to know if you are planning to attend:
* CES Las Vegas NV January 5-8, 1996
* NAMM Anaheim CA January 18-21, 1996
* TEDSELL Monterey, CA February 21-24, 1996
* HAA Management Conference San Diego, CA March 3-5, 1996
* Custom Builder Conference and Expo Long Beach CA March 22-24, 1996
Please let us know if you or someone from your company will be attending each of these key events. Simply check the appropriate box on the enclosed Faxback Survey #10.
Special Prize Drawing
The prize drawing is a regular feature of the Important Announcement Series. Here's how to enter: Returning the survey enters you in the special prize drawing. The prize this issue is a combination of home-made Holiday Truffles (chocolate soaked in Rebel Yell Bourbon) and a $25 American Express Gift Cheque. On Monday, December 18, 1995, the winning survey will be drawn at random from the ones received by either fax or mail. Sound like fun? Please respond today!
About Stiernberg Consulting
We are business development consultants. Our clients include manufacturers, publishers, and trade associations in the electronics industry, with emphasis on entertainment and communications. We work on a wide range of projects from strategic planning and market development to event production, training seminars, and custom research.
We would like to share more information about our practice with you. Please request the updated version of our Business Profile by checking the box on Faxback Survey #10, or contact us via post, telephone, or electronic mail.
Let's Talk Soon!
1995 was a fast year for all of us--solid growth and lots of interesting activity in our industry. We hope that you have had a good year and that you take time to enjoy the holiday season. Best wishes for a prosperous 1996!