***z-LINKs***ON MARKETING***
By: tectz
Reply To: 10791 by tectz Saturday, 5 Jun 1999 at 4:38 PM EDT
Post # of 10841
To: ztect (25004 )
From: ztect Saturday, Apr 10 1999 10:18AM ET
Reply # of 30188
Note First re-read...
Message 8821543
Message 8821552
To: Andrew H (18361 )
From: ztect Sunday, Feb 28 1999 11:23AM ET
Reply # of 25004
Interesting Reading Below.....
Remember TSIG is many things...
1). An e-tailor...cd's, books, dvd's, videos
2). A Teleservices company offering telephony support
3). A marketing company...
4). Website developer and content provider
Number three may be the most important and least talked
about of the three main aspects of TSIG's business. The card
is a marketing strategy predicated on co-branding, and third-party
advertising all with the main purpose of directing traffic to
TSIG's web e-tail sites and their Partners sites too ....
Below are some other prevalent strategies that other e-tailors are attempting at this time to increase their brand ie. logo recognition
and attract a customer base. IMO many of these strategies
are flawed...I may or may not comment further in subsequent posts.
IMO TSIG's strategies build upon what others are doing,
but does so in a more cost effective and efficient manor, so that
while other e-tailors and internet malls are in the "branding mode",
TSIG will be actually making earnings.
Sincerely,
ztect
==============
To: Boyd Zander (17666 )
From: ztect Monday, Feb 22 1999 1:25PM ET
Reply # of 25005
Boyd...................................................................
AJ obviously is pre-occupied with current models of marketing
put forth by the likes of AMZN, CDnow and Buy.Com that are all
predicated on establishing name recognition (ie.BRANDING) through
expansion of domain through acquisition and direct marketing.
Such an approach is incredibly expensive as has been born out
on the balance sheets of the aforementioned competitors.
Plus such marketing strategies also don't retain customers
except through further reducing profit margins by reducing sales prices.
Take a look at buy.com for example. Buy.com is actually
selling goods at less than cost to attract and retain buyers.
Buy.com is attempting to make earnings via sale of on-line advertising
while at the same time using direct and very expensive marketing
costs like television advertising to direct eye balls to buy.com's site.
Take a look at CDnow as well. Direct costs of advertising and
the costs to "re"-advertise to retain customers are making
it difficult for CDnow to remain competitive with their pricing
since their marketing costs are so hyper-inflated.
Even look at AMazon, they are spending tremendous amounts of money to
expand and establish their name (Branding) and may take years,
if ever, to show a profit.
Now are these the types of e-tailers that AJ is suggesting that
TSIG should emulate?
AJ just doesn't get it...nor for that matter do most
internet analysts. If the quote-unquote big boys
did, this stock wouldn't be at its current price especially
with the announcement of the Babe Ruth League deal.
Can't wait until TSIG contrarian marketing strategy
starts to make announcements with companies beyond just Kodak
and some of the other sports teams, charities, and organizations
already announced.
When other e-tailers understand the simplicity and
the beauty of TSIG third party marketing strategy and
the use of other already established company's branded
names on TSIG's cards directing traffic to TSIG's sites..
TSIG will have already been well established due to
the likes of Hwang, Gordon, Rich and are own like Marty, Sam and Norm.
The most incredible thing about TSIG's strategy is that
it is "open" to investors to contribute much like
programmers contribute to open architecture software...
Very ...very ...amazing to say the least...
Below again is my prior post pertaining to third party advertising.
So don't worry about old AJ....he's just as ignorant as
his girl friend is ugly.
Sincerely,
ztect (spelling not checked)
btw- can people please not get so caught up in the
moment by moment share price. IMO this gives the impression
that the thread is interested more in short term movement rather
than long term growth. (Just my thoughts for what they are worth).
================
Message 7954682
TSIG's strategy answers the two primary questions for e-tailers.
1). How do e-tailers effectively and inexpensively direct (attract) customers to their web page site stores? (Inexpensive is key because profit margins are already slim for e-tail commerce).
2). How do e-tailers retain customers without having to constantly pay to retain these customers? (Especially since cutting profit margins to such an extreme that some e-tailer are going to the far extreme of selling below costs doesn't seem like a long term solution to retaining customers. Due to lowering advertising costs, such a business plan of selling below costs only appears to be a way to incur a ton of debt).
Note: If marketing cost are reduced for both attracting and maintaining customers, operating ie. overhead costs are drastically reduced so items can be sold for less then competitors similar products- yet profit margins are still maintained.
Now here is the three word answer to TSIG's strategy: Third Party Marketing.
How does this work for TSIG?
TSIG makes deals with charities and corporations for "cards".
TSIG's name doesn't necessarily appear on the card.
The card names include a growing list of familiar names
with many more corporate deals to be announced.
So, the KodakCard, the BabeCard, the NationalMusic Foundation Card and possibly many of Signature's clients...et cetera become the "in"-direct advertisers for TSIG and also create EXPOSURE .
All these other companies promote the "card" as part of some
promotional deal along with entities like many professional sports teams. The cards themselves even become collectible items.
So what does this mean?
First, free THIRD PARTY advertising because a TSIG site is being directed to via the specific corporate or charity card creating
web traffic and eye balls.
Second, revenues are generated directly via card sales like with
the Babe Ruth League deal w/o even any sales of compact disks.
Three, once the card is purchased, since prices of TSIG's CD's (and other soon to come products) are lower than competitors due to lower costs of advertising, customers are retained because of these lower prices for , at least, the duration of the card ie. 20 compact disks.....and books..and whatever in the forthcoming future.
Now compare these third party advertising strategies with CDNow and AMZN and determine which of these three companies (the third being TSIG) has the most cost effective advertising strategy.
Again the key the vast exposure created via third party advertising
with minimal expense incurred by TSIG.
Sincerely,
ztect
(Voluntary Disclosure: Position- Long; ST Rating- Strong Buy; LT Rating- Strong Buy)
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