The Internet is like a New Market

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Internet Marketing

Communication, distribution and payment procedures on the Internet are radically different than already known markets. Innovation and change rates are much higher.

Economic models that work on the Internet are inspired by known economic models, yet are different.

When a company approaches a new market it is often done successively and with much prudence. Occasionally companies adopt a Win or Die strategy and try to establish themselves with a full structure from day One. Those who do so take high risks with little view to success. Due to the high rate of change, entering the Internet can easily become an expensive and useless experience!

How to go about preparing an Internet Presence

The first tasks a company entering a new market undertakes are information search and consultations with specialists who know the distribution system and the cultural aspects.

• Culture
• Legal and fiscal aspects
• Payment terms
• Communication
• Logistics

In the second phase companies go out to search for a local agent or distributor, and once they understand the market fully, they consider establishing a permanent presence - this happens a couple of years after the first introduction.

On the Internet time is being twisted - an "Internet year" can be compared to something like three months in real life. Nobody can permit themselves to wait for long. It is of utmost importance to quickly have an Internet presence, and to learn with it. The most common error is to pay too much for an external body to take all issues in charge. If the Internet presence is outsourced it is no longer a real direct presence, and the benefits and experience from being directly in touch with problem areas and new opportunities do no longer contribute to subsequent decision making.

It is necessary to be directly involved with an Internet presence in order to understand the functioning of this new market, as well as the great issues of our technological future.