The Impact of Technology

Chapter 16

In the retail context the WWW provides marketers with yet another channel to access its target market. Marketers have long recognized the benefits of being close to the customer, and the WWW provides another tool to facilitate this direct contact. In a more pragmatic sense, the Internet permits easy and low-cost entry to new entrants in a marketplace that may have barriers to entry. Some of the other advantages in the retail context include:

• Allows small entrepreneurs to access a global platform (enhanced reach)
  
  
• Minimizes the cost of entry for many industries
  
  
• Eliminates fixed cost outlays (Ex: store rent, salaries, etc)
  
  
• In contrast to conventional direct marketers such as catalog merchants it is more cost effective. Due to the elimination of the cost of printing and distribution
  
  
• Online information can be updated frequently and at a low cost. This provides the marketer the ability and flexibility to respond to market conditions
  
  
• Creation of a database which may subsequently be used to segment on the basis of consumer psychographics, demographics, and purchase data. This will be key as Web clutter increases.