This is a very comprehensive report analyzing
advertising-supported Internet ecosystem. The author detailedly goes through the
frame of Internet ecosystem, each layer that composes the system and the
influence and affects.
I learned a lot from reading this whole report. First of
all, the CREC model which was created way back in 1998 portrayed a complete
frame of Internet ecosystem. The CREC model states four layers of the ecosystem,
which are the Internet Infrastructure Layer, the Internet Application Layer,
the Internet Intermediate Layer, and the Internet Commerce Layer. As a business
student, my understanding of this ecosystem can be interpreted in an easier understandable
way. Based on the construction of the infrastructure layer and application
layer which provided hardware and software that make Internet available to use,
business in the fourth layer will be able to realize commerce by using
Internet. The third layer in the middle provides a platform for middlemen
business, offering services between business and customers.
I, as a marketing student, place myself in the third layer,
helping business deliver marketing services and gathering feedback from
customers. This e-marketing industry is different from the traditional
marketing industry. Based on the specialties of the Internet ecosystem, majorly
based on the specialty that internet greatly shorten the distance between business
and customers, middlemen, such as marketing services, have been neglected by
both sides. There are hot discussions out there now talking about whether
marketing is dead because of the advent of Internet and e-commerce. As I talked
before in my past blogs, the marketing channels have been added. In my opinion,
it’s good news. Marketing people now have more methods to get to their target
customers. However, it’s still difficult. With all these traffics coming to
your website, it’s hard for marketing people to correctly target the customers
who are really in the end of the buying circle. E-marketing is still in the
infant age. There is still a long way to go.
While reading the report, I find myself very interested in chapters
talking about Entrepreneurships, maybe because I am also taking an
entrepreneurship class right now. The CREC model clearly states different
layers in the system and implies opportunities for innovation in each layer. I have
many computer engineer friends and they love to talk about their ideas and
analysis of the Internet market. The advent of Internet gives small business
opportunities and makes starting a new business much easier. The idea is the
key. Once you have an idea that is realistic, you don’t even have to know how
to do a business. There are companies existing aiming to help entrepreneurs
like these to create their own businesses.
Reference
John Deighton, Harold M. Brierley “Economic Value of the
Advertising-Supported Internet Ecosystem”
Good angel you picked to analysis in the first three paragraphs as a marketer. Indeed, the internet intermediate layer is the place we are more actively in. It is arresting that you mention the marketing is neglected by the business and customers.em....I can not say so. At least, I still look for product information online. I view internet makes the marketing more easily and more cost-saving than ever before. It costs you almost nothing to market the brand on FB or twitter to generate awareness.
ReplyDeleteIn addition, the internet makes the entrepreneur easier, which I also mentioned in my post. The threshold of entering the internet industry is low. That's why the internet industry is so prosperous as the report states.
Hi, Mengting, I like that you put yourself as a marketing person every time you write a blog. It's make you always choose a professional sight to analysis problems. You made a good point on mentioning it's hard for marketing people to target customers who is on the end of buying circle. But good thing is that we can collect customer data much easier than before, and the market feedback is obviously. Marketing person need to find clues from large amounts of data. That's also the reason why we need to learn boring data analysis sooooo hard as a marketing candidate.
ReplyDeleteMengting, I totally agree with you about the "target customers" part. It is really hard to do so especially for a fairly new product. Although internet can generate people's awareness of the new product, it is difficult for marketers to convince the customers take further step to try it. Also, as to the entrepreneurships, idea is indeed a key, however, as a rational marketer, although the idea may be realistic, it also should be feasible. Entrepreneurship is a very profound topic. But yes, I basically have the same opinion with you, and I appreciate your analysis based on your own experience - you make me think more about myself!
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