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Technology Stocks : Cyberian Outpost (Symbol: COOL)
COOL 0.103+10.6%Sep 5 5:00 PM EST
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To: LANDRUSH who wrote (366)12/2/1998 4:20:00 PM
From: Tim McGee  Read Replies (1) of 1932
 
Marketing strategies,
I can assure you that i do understand mktg strategies (Lots of job experience here).
I did not say the ads were not going to be successful b/c i did not like them. I don't like them but that is irrelevant.

My key point is that with such a small percentage of consumers buying online right now, COOL will have to dedicated a large percentage of its budgets to a high level of TV advertising. This can be costly and i'm not sure its sustainable over a long period of time. There are much larger companies with well known successful products that do not do TV advertising b/c of the target audience is better reached by other methods.

I agree with Elroy's point here that the ads on CNBC are primarily for investors but not consumers. COOL mgmt realizes that they have a short term window to create the maximum noise here until a consolidation phase hits this market. At the very least they want to be in a good position to be purchased.

I'm not stating that COOL will not be successful, they very well may be a huge success. I think the site is a good computer shopping site but not among the best and imo, not the best mktg strategy right now.

I will say that their strategies lead me to believe their goals are short term.

Tim (not in cool, not short)
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