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AM: Marketing Musings

To:     "''" <>
Subject:     AM: Marketing Musings
From:     Mitch Arnowitz <>
Date:     Thu, 5 Feb 1998 13:07:07 -0500
Organization:     Morino Institute
Reply-To:     "" <>

                                        Marketing Musings
                                          February 5, 1998

                Visit and join the Netpreneur Program at

                                                                Mitch Arnowitz

In This Issue

- Quote of the Week
- Whats Happening In
- News, Articles
- 1997 Commerce
- Sitings
- Links, Resources
- Meetings
- List News
- Subscription Info.

Quote of the Week

"We believe that Egghead's strong brand name and growing base
of over a million email addresses will be significant assets as we
focus on the Internet," Egghead CEO George Orban announced
along with the news that the company will close its 80
remaining stores and concentrate instead on building its web site.

Whats Happening In

The latest Marketing Challenge;
*Marketing Challenge #2; tag line*
is well under way in our discussion group. Shortly,
Tom Graham (of will be summarizing
responses and report back to the group.

News, Articles

2/98 Washingtonian- By now many of you have seen the latest
issue of the Washingtonian. The current cover story;
"Young Millionaires (as Washington becomes a new silicon valley,
young people are striking it rich. How are they doing it? Plus- how
can you hit it big at a hot company?") is a good read. You will
recognize many of the netpreneurs that are mentioned here.

The Washingtonian web-site
has the cover but hasn't posted this article yet, natch (a trend
as publishers follow the proven on-line model of offering select
information for free and making you pay for the rest of the stories).
January/February issue of the Harvard Business Review-
has an interesting article on the future of relationship marketing;
"Preventing the Premature Death of Relationship Marketing."
You can see a preview on-line but you'll need to ante up $3.50
for an article reprint:
The ad network DoubleClick, Inc.
announced that its DART technology can now target & deliver
demographically driven ads for clients, based on registration
information a site collects. The new feature compares site
info. against Doubeclick's own targeting data, such as location.

DART technology will also be used by CBS MarketWatch
to serve targeted ads. I couldn't find information on DART
technology off the DoubleClick homepage or index but
I did take a look at this company's resource area:

Tips given in the resource area are DoubleClick specific
but are applicable to all sites. Specifically, I liked the
*case study* section here that highlighted several marketing
studies, including the now famous BMS Excedrin direct
marketing/sampling test. You need Adobe Acrobat to view the
I don't know if this is an advertising/marketing story but this
past week's announcement by ISP may affect all
of us. has decided to move away from flat rate pricing
for access @ 100 hours + per month. caters to the
business market (BTW, did you know that is the
back-end to

The skinny:
Finally! A useful way to take advantage of the technology:
World Championship Wrestling
will broadcast an upcoming match between pro Hulk Hogan and
Sting only on the Internet. Access is $7.95, and the site will
include live streaming audio play-by-play, a streaming video replay,
interviews, interactive games, and a chat room for fans.
AS Erols Internet was marching towards an IPO, they recently
got bought by regional telecommunications company RCN.
RCN provides telecommunications services to the residential
market, including local phone, long-distance, cable television
and Internet access.

RCN will acquire Erols for about $35 million in cash and $48.5
million in RCN common stock. A nice backgrounder on RCN can
be found at:
IMGIS  has acquired StarPoint Software Inc.  . StarPoint, used by GeoCites & others,
is ad serving technology that offers ways to target advertising.
ADSmart  and fellow CMG-Internet Group
Company Engage Technologies
announced the formation of a strategic partnership to deliver online
advertisers and direct marketers an unparalleled level of targeting
and user information. Under the new relationship, Engage
Technologies'  suite of profiling tools, working in combination
with ADSmart's context -sensitive targeting expertise, will provide
advertisers with powerful demographic and behavioral data about
visitors from some of the Web's leading site destinations.

For the rest of the story:
Egghead, Inc., as reported above, plans to close its remaining retail
stores. Egghead is one of the first major retailers to completely
shift its business focus to the Internet. No doubt, external factors
(such as business or lack of it, the lure of online computer product
sales) had much to do with management's decision but this is still
big news for Internet commerce. Eghhead's new name?, of course.
The big news of the week was Newsweek's decision to
place it's coverage of Clinton-Lewinsky on AOL,
*prior* to newsstand release. This event sends a clear message
to marketers and further validates the medium.

Undoubtedly, The Drudge Report (I won't even bother giving
you the URL, its been impossible lately to get to the servers)
played a key role in this story's publication and, I think,
beat everyone to the punch.

1997 Commerce

the following comes from ICONOCAST:


In the final analysis, e-commerce exploded in 1997. It grew
from a sub-$600 million level to nearly $9 billion, with 85
percent, or $7.5 billion, accounted for by business-to-
business. E-commerce's momentum was chiefly responsible
for the more than $300 million e-merchants poured into the
Internet portals to stake out high-traffic locations.

The business-to-business category, which according to Simba
includes Cisco, Dell, Digital, IBM and Gateway, accounted
for $6 billion, or 86 percent, of total e-commerce revenue.
The 10 categories covered in the report are shown below:

Rank  E-Commerce Category                       1997 Revenue
 1.   Business-to-business (Cisco, Dell, etc.)                  $6,000M
 2.   Auctions/Web Malls (Onsale, CUC, etc.)                204
 3.   Online Services Malls (AOL, etc.)                               195
 4.   Books (,, etc.)         181
 5.   Computer resellers (NECX, ISN, etc.)                   153
 6.   Flowers & Gifts (800 Flowers, PC Flo., etc.)                 70
 7.   Grocery & Food (Peapod, Oncart)                              68
 8.   Music (CDnow, N2K, etc.)                                 52
 9,   Travel (Preview Travel, Expedia, etc.)                            47
10.   Retailers/Catalogers (Sharper Image, etc.)                      31
Total                                                                    $7,030M
Sources: Jan-98 Cowles/Simba Information


Two local netpreneurs recently announced interesting marketing
partnerships. * Warning: if you keep hearing the beginning of
the Pink Floyd song "Money" as you scan the next item, you're not

The big news for individual investors and stock brokerages alike
(on & off-line) is the recent announcement that Fox News Online  , Money Online
and others are now offering free *real time* quotes. Users have
access to 50 real-time quotes per day for securities traded on
the NYSE, AMEX, NASDAQ exchanges.

Foxnews is also partnering with E*Trade (the co-branded site
actually reads "sponsored by E*Trade, powered by Thompson
Investors Network"). Transactions are made easier here,
commerce is convenient.

Thompson Investors Network of Rockville, the consumer group
at Thompson Financial Services has struck deals with publishers
to offer the "RTQ" (Real Time Quotes) service to consumers. TFS
is a division of The Thompson Corporation ($7B) and provides data
to the investment community (people like Merrill Lynch).

I took a look at Thompson Investors Network  , specifically the $9.95 monthly
membership area and noticed that along with lots of benefits, you
also get *delayed* stock quotes (20 min.). Now,
I know that real time quotes aren't that a big a deal for most people
yet but still... delayed quotes for $9.95 vs. real time quotes for free?

To be fair, TIN does have a free site with real time quotes and also
offers other benefits for its membership fee but perception is
everything and TIN has done a super job of co-branding or powering
partner sites. Perhaps the folks in Rockville can help straighten me
out here.
whats in a name?...Since 1993 Network Solutions, Inc.  (Nasdaq: NSOL) of Herndon, has served as
the global registrar for .com, .net, .org, .gov and .edu top-level

Network Solutions has launched WorldNIC Services  to "help small business owners make
a name for themselves." Its amazing what competition can do...
WorldNIC Services is currently running a banner campaign on Inc.
Magazine,  offering small businesses the
opportunity to get a domain name. Clicking on the banner walks
you through a 5 step process to get your own domain name.

WorldNIC Services is also linked from the Dunn & Bradstreet site  .Not online? No sweat, call 1-888-NIC
-WORLD to get your name. A 1-800 registration service is a
great idea but I don't recall seeing the number advertised off-line.

There was *other* news coming out of the Clinton White House
last week... Namely, the administration's draft proposal outlining
how the government should transfer the domain name system to
the private sector. For more on this important issue:,4,18656,00.html?latest
Theres a new zine in town. Terry Toomey of Alexandria
and President of Paladin International Inc. writes in to
tell us about *The Powerhouse Marketer* Magazine  ;
"a publication designed to make life easier for
sales & marketing folks."

For a publication overview, check out the table of contents off
the homepage. The current issue has an interesting lead article;
"Selling in the New Media Age." You can even submit a story of
your own:  .

did you know... that 11% of all adult online users in the U.S.
are actively trading stocks online, from the 2nd to the 4th quarters
of 1997, the number of individuals trading online grew more than
150%. For the rest of the story:

Links, Resources

Need a job or an employee?

The DC Chapter of the American Marketing Association  has an email newsletter filled with area
marketing jobs. "The Marketer" is published weekly and has
traditional off-line marketing jobs as well as on-line opportunities.
Subscription is free, there is a modest fee to list a job. Details

How to subscribe to The Marketer: call (703) 533-3100 and leave a
message with THE MARKETER Hotline or e-mail your request to:

How to place a job listing in The Marketer: fax or e-mail a 150 word
paragraph describing the position and required qualifications by 4:00
p.m. Thursday. For $50, your listing will appear in 3 consecutive
weekly issues. An invoice and copy of the issue your ad first appears
in will be sent at publication.

Please call (703) 533-3100 and leave a message on THE
MARKETER Hotline and one of our volunteers will get back to you.
Or, zap an e-mail containing your job posting and billing information


One place to find a roll-up of all relevant regional meetings is the
Netpreneur web-site calendar, found at:

Two marketing meetings coming up on Feb. 12:

* American Marketing Association (AMA-DC), Women In
Advertising & Marketing co-sponsor "Web Marketing - A Tool for
Everyday Business". Email: Event URL:  .
For more Information:

* Capital PC User Group (CPCUG) Internet Special Interest
Group (SIG)- "Consumer view and back-end technology of
commercial Web sites". Speaker: Raj Khera, President, GovCon,
Inc. For more information:

List News

Recently, I saw the following 2 posts on John Audette's I-Sales
Digest list & thought there was value in passing them on. To
respond to these posts:  Subscribe to the I-Sales list by
sending a message to:

// -- NEW TOPICS -- //

From: Michael Patricks <>
Subject: Is targeted emailing worth it?

Hi everyone.

Recently, we paid a company to do a targeted email marketing
campaign for us. The results were alright (about 5% came to our
site and we got about 3 more orders this week). However, others
were discouraged from coming to our site altogether by the
nature of our advertising method.

My question is, is it worth mass advertising and getting these
sales or is it better to submit to search engines and let people
come to us? Competition is really tough in our market and we
need as much input as possible.

PS: Banner advertising has been a failure for us by the way,
and we're going to stay away from it.

Thanks Wired 2000:

Sincerely Yours,

++++ next post ++++

From: Vickie Barnes <>
Subject: Contracts for Advertisers

Hi Everyone!

I was hoping that someone out there could help me out.

I have currently opened my site up for advertising and already have
a company interested in purchasing banner advertising which is
wonderful...but I think I may not have thought through everything

Does anyone have any information on how to handle contracts for
advertising.  I am not even sure what I would put into the contract
to make it legal.  Does any one know of any examples on the web?

Thanks in advance,
Vickie Barnes     <>
The Labor of Love
Your Pregnancy and Parenting Home on the Web
Pregnancy and Parenting Search Engine

The following post was recently sent into the Netpreneur Talk the Talk
discussion group. I visited David's site. The group has done a good job
with this study. The site offers up relevant, timely info. and is
worth checking out.

-----Original Message-----
From: []
Sent:   Monday, February 02, 1998 9:25 AM
Subject:        TT: Harvard Law School Project on Internet Advertising

Hello Everyone,

A couple weeks ago, I sent a message to this mailing list requesting
information on Internet advertising.  I requested these materials for a
group project in HLS' January class on High Tech Entrepreneurs.

A lot of you sent great tips in response to my request.  Many thanks for all
your help.  Because the time frame of the project (2 weeks) was short, all
of your advice was quite useful in pointing us in the right direction.  FYI,
we have just put the results of our two-week group project on the web site  Once again, thanks for all of your help.

David Park

P.S. In case you are wondering, we named both our group and web site
"SpecialMasters" because the professor of the class was Larry Lessig,
who is the Special Master of the MSFT case. =)

Subscription Info.

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Marketing Musings is Copyright  1996-2003 Morino Institute, all rights
reserved. The information contained in this newsletter has been
obtained from sources believed to be reliable, but is not necessarily
complete and its accuracy cannot be guaranteed. It is provided "as is"
and your use is at your own risk

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