The Dot com boom and bust Marketing Mix

Discussion 1 What were the major catalysts for the rise of the dot coms? What were the major catalysts for the rise of the dot coms? What were the major catalysts for the fall of the dot coms? What were the major catalysts for the fall of the dot coms? Explain how the same factors worked together to first create the rise in the dot coms andthen lead to their downfall. Explain how the same factors worked together to first create the rise in the dot coms andthen lead to their downfall. Where do you think the dot coms of today will be in 2 years time and where will they be in 5 years time? Where do you think the dot coms of today will be in 2 years time and where will they be in 5 years time?

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What were the major catalysts for the rise of the dot coms? Hype – talking the business up Lack of experience of technology Confusion between visitors and customers Major change in speed of trading Major change in financial information sources

What were the major catalysts for the fall of the dot coms? Realism coming into projections The money ran out Large amount of cash spent in a little time (cashburn)Large amount of cash spent in a little time (cashburn) Technology penetration not reaching critical mass Collapse of advertsing market as users became tech savvy

How did the same factors that worked together to first create the rise in the dot coms also lead to their downfall. Expectations for users and cash flow Head hunting and turnover of staff

Where do you think the dot coms of today will be in 2 years time and where will they be in 5 years time? ?

Marketing and the Four P's

Marketing – Four P's Marketing can be broken into four areas Product,Product, Price,Price, Place andPlace and PromotionPromotion

Product Product variety, quality,design,features, brand name, packaging,size, service guarantee and after sales support.

Product Phases (life-cycle) Introductory Phase SegwaySegway Growth Phase FriendsreunitedFriendsreunited Maturity Phase Mobile Phone - NokiaMobile Phone - Nokia Decline Phase Projectors, ScootersProjectors, Scooters

Product Life Cycle

Product Life Cycle and Demand

Demand life cycle If there is a noted need then there will be a product to satisfy that need (stage E). This is usually followed by an accelerating growth stage (G1) and a decelerating growth stage (G2). Then Maturity stage (M), Decline stage (G). There may be technology demand cycles, represented by T1 and T2. T1 was the initial technology that was overtaken by T2.

The Underlying Impact On Products Of The Demand Technology Cycle

Promotion Sales promotion, advertising, public relations, direct marketing

Promotion methods Media Advertising (television, magazines, Internet, radio) Personal selling (involving a sales person) Non-personal communication (persuasion advertising - competitions, free samples. Other promotional types include public relation exercises and free publicity.

Advertising Advertising can either be concentrated on the general image of the company or a specific product for example a special offer. TELEVISION/CINEMATELEVISION/CINEMA RADIORADIO NEWSPAPERS AND MAGAZINESNEWSPAPERS AND MAGAZINES POSTERSPOSTERS EXHIBITIONS AND TRADE FAIRSEXHIBITIONS AND TRADE FAIRS INTERNETINTERNET