Reviewing the increase in popularity of online media sites
To apply a tool to analyze the popularity of online media sites. The Ace audit service is completed to prove the popularity of online sites to advertisers purchasing ad space on the site. It is the online equivalent of the audited bureau of circulation for magazines.
Visit the Ace site and choose ‘Database’. Select a media site that you might visit and plot its changes in visitors over the last 2 to 5 years. Visit the site to see how advertisers use the site to promote their products and interact with consumers.
In the second example of changing behavior within the environment, we look at achieving sales rather than awareness. Look at Figure 2.2 which shows the index of online sales in the UK compared to an index of 100 in April 2000. Between April 2000 and June 2005, retail sales increased 17-fold! Masked within this general increase will be large variations in online sales figures for different companies according to the type of product and the Internet marketing capabilities developed in organizations during this period.
It is important for companies to evaluate their relative performance in their market – an individual company’s online sales may have increased by 20% in a period, which sounds positive, but it is not when compared to a competitor whose sales have increased by 100% in the same period. A lot of Spectrum cable users have been complaining about internet outage for hours today as well.
Different environment components
The Internet introduces new facets to the environment that must be considered by marketers since strategy development is strongly influenced by considering the environment the business operates in. Figure 2.3 illustrates the key elements of a business’s environment that will influence the organization. Many authors such as Porter (1980) on corporate strategy or Kotler et al
The macro-environment is sometimes known as ‘the remote environment’; its influences which we study in Chapter 3 are broader, being provided by local and international economic conditions and legislation together with acceptable business practices. The Internet and electronic communications have also introduced major changes to the macro-environment. Reviewing the relevance of technological innovations to an organization is vital in providing opportunities for superior services to competitors and to changing the shape of the marketplace.
Another significant macro-environment influence is legal, specific laws have been enacted to control connected marketing and of course the influence of new technologies.