To: ztect who wrote (28 ) 1/28/2000 5:23:00 PM From: ztect Read Replies (1) | Respond to of 177
(sa/ma) Etailors & Volume Models 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 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 LifeTime Learning deal. Can't wait until TSIG contrarian marketing strategy starts to make announcements with companies like Kodak, other sports teams, charities, and organizations beyond those 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. Sincerely, ztect (spelling not checked)