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archived news from MarketingViews

2003, January

See also:- article:- Writing an Electronic Communications Policy
article:- What's a Good Click Rate for a Banner Ad?
Press Release FAQ's, High-Tech Marketing Agencies

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today's news etc from MarketingViews
Moreover.com - Marketing News - daily headlines from 1,500 sources
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EcommerceTimes.com - articles & high tech & CRM news
Nua Internet Surveys - internet & ecommerce news
SiliconValley.com - San Hose Mercury News
dmnews.com - news about direct marketing
STORAGEsearch - news
Sun SPARC - news
Marketing Nomenclature, and the Naming of Names - articles, books and insights by Naseem Javed

Editor:- January 31, 2003 - a new article is published today on MarketingViews called "Marketing Nomenclature, and the Naming of Names". The author is marketing nomenclature guru - Naseem Javed who has published over 100 articles and many books on this subject. Naseem also advises CEOs of Fortune 500 and other leading corporations on all matters of complex global naming in the e-commerce. You'd better set aside some time for this, because it's a fascinating subject for anyone involved in marketing, and once you start - you won't want to stop. ...read the article

Worse than the SQL Slammer: Thousands of Top UK Managers are Paralysed into Inaction this Week by Friday's Tax Deadline

Editor:- January 29, 2003 - if you're not getting the usual fast response from your UK partners this week, chances are they've been buried by paperwork and are not taking any calls. This week sees the annual rush to complete UK personal tax returns which have to be in by Friday or face fines and interest charges. Due to the well publicised cases every year in which the UK's tax department (Inland Revenue) lose thousands of tax returns which are sent in early, and due to the other pressures which affect high paid tax payers, the national sport is to see just how late you can leave it before starting to look at the list of all the documents you need.

In past years, yours truly has left his own paperwork collection exercise till the very last moment. But this year I'm ahead of myself, and feel pleased with myself. I started today and it's done. My accountant will hand carry my return into the tax office tomorrow, which is a good 24 hours earlier than the drop dead deadline. Plenty of slack in the system.

In the days leading upto the January 31 receipt deadline financial institutions all over the UK get frantic phone calls from their customers. "Where's the paperwork for that dividend payment I got last February? It's lost. Fax me another copy dammit. I need it now." Even if, like me, the payments for all this stuff were computed and sent off long ago, the physical process of wading through a year's worth of personal financial I/O is like wandering down memory lane. The simple act of retrieving a statement from the slush pile which should only take a minute or two, seems to extend into an hour of procrastination.

Napoleon referred to Britain disparagingly as "a nation of shopkeepers" but it's more accurate to say we have become a nation of unwilling accountants. The government creates taxes which are so complicated that you need an army of accountants just get through the mess of regulation. Nowadays of course, you can fill in your tax return via the web. If your idea of fun is spending 45 minutes filling in boxes online only to have all the information disappear, just as you get to the end, then that's a good option. But filling in the forms is the easy part anyway. It's finding out the numbers you have to fill in which is the hard part. Anyway that's why you can't talk to anyone important in the UK today. We're all working for the government.

Missed Storage Visions 2003 Conference? Buy the Book

SAN JOSE, Calif - January 28, 2003 - If you weren't able to attend the Storage Visions 2003 conference earlier this month, a bound book of the conference presentations is now available. The book has 300+ double-sided pages and costs $195 plus shipping ($10 domestic and $40 international) and can be ordered online.

The Storage Visions 2003 Conference addressed data storage requirements for companies involved in creating multimedia content and distributing it to consumers through high speed data transfer systems. The conference contained 16 in-depth sessions, panels and keynote talks. These sessions were organized by Visions Conferences and the Multimedia Research Group, Inc.

Over 70 companies were involved in the sessions, exhibits and keynote addresses. The conference was sponsored by 24 companies and organizations including Seagate Technology, NDS, Computer Technology Review, United Entertainment Media, FCIA, MPEG-4 Forum, SMPTE, iVDR Consortium, Jobstor.com, and STORAGEsearch.com. Keynote speakers included Michael Maas of the IBM Digital Media Group; George Wiley of Qualcomm, Ken Morse of PowerPC, Rob Pait of Seagate, and Lowell Moulton of Sony.

...Looking ahead. The 2004 Storage Visions Conference is scheduled for January 6 and 7, 2004 at the Stardust Hotel in Las Vegas (just before the 2004 CES show). The conference organizers are now soliciting conference sponsors, exhibitors, and speakers for the 2004 event. ...Storage Visions

Thousands of Web Sites Affected by SQL Slammer Worm

Editor:- January 27, 2003 - there was a great advert today for Solaris and other Unix derivatives, caused by the shutdown of thousands of web sites worldwide due to a web virus which attacked Microsoft based servers. Our own ISP, Verio (UK), shut down their datacenter this morning as a precaution to isolate the virus. This action affected all web sites - not just those hosted on NT. So our publications went offline for some hours. We apologise to readers for this inconvenience.

Microsoft says that a patch for the SQL Server 2000 vulnerability was released as long ago as July 2002. Nevertheless millions of users have been unable to access web sites today because of this server based virus.

Is there a market for higher priced web hosting based on higher security infrastructure? My guess is - yes.

Maybe Sun should make more capital out of this issue. It's unlikely that other major Unix server vendors such as HP or IBM will use this incident to talk up the superiority of Unix derivatives over Microsoft servers. That would jeopardize their relationships with Microsoft.

See also:- STORAGE Security

Marketers Rediscover Real-Time Business Intelligence Tool from the 1980s - Say Hello to the Phone

Editor:- January 24, 2003 - in these troubled times when a valued customer doesn't reply as quickly as expected to your email, what's the first thing that goes through your mind?
  • the customer is out of the office on vacation?
  • the customer has been let go, by the organization they used to work for?
  • the whole organization has disappeared in a puff of smoke?
If, like me, your first thought is the puff of smoke scenario, what do you do next?

No good going to the company's web site - it was never up to date anyway. Reach for... the phone.

This year you're going to see a lot of long established customers go down the drain carried by the tide of recession. Knowing what's going on may save you delivering products and services for which you're never going to get paid. The phone is a useful and reassuring way to keep in touch.

This is also the year when many of you are going to discover that all that email marketing you did in the last year was mostly wasted. I'm surprised that the fable of email marketing has persisted this long. If YOU don't have time to read your email, and 90% gets filtered out as SPAM or block deleted without being opened, how can you realistically expect all the targets of all that opt-in SPAM to behave any differently? There's only one effective method of opt-in mass marketing - that's web advertising. Banner ads are only served up to live people who are looking at web pages. You don't get charged for readers who aren't there...

...Unlike the 25% of people who will never get to see see your mailshot. When times are bad - print publishers have even less resources to clean their lists... ...or the 40% of readers, in some cases, who will never open the magazine which contains your expensive ad. But don't worry. I'm assuming that MarketingViews readers gave up the B2b print advertising habit years ago. It's a process which converts valuable marketing dollars into expensive paper and ink which is soon recycled as garbage with few other measurable side effects.

Back to that phone thingy with the dust on it... Which is the bit which you talk into? Where's the help button? You'd think they'd have icons for that sort of thing sorted out by now.

Hearing the Voice of the Customer - When Budgets are Tight

Pioneer, Calif - January 24, 2003 - when budgets for travelling and market research are tight, it's more important than ever to get the right answers for deploying your business assets, otherwise you may be shooting in the wrong direction at the same time as being low on ammunition.

That's the thinking behind a new service from King Research called CABs - a teleconference/web-based Customer Advisory Board service. Because the new service uses teleconferencing and the web it is very cost-effective compared to traditional focus group based research.

We have a rigorous methodology for developing and running our clients' CABs. This process starts with the segmentation of a client's market. After clearly identifying our clients' most important market segments, we develop a profile of representative customers. Customers are then recruited, and the CAB panels are formed. We moderate the CAB panels in-person or via teleconferencing and the web, analyze the results and report on what customers need and value. ...King Research

The Next "Big Thing" in IT?

Editor:- January 22, 2003 - a new article today on MarketingViews asks the question - "What Could be the Next "Big Thing" in IT?". Luckily we give a plausible answer. So if you're still looking for a positive fast growing market opportunity to put in your business plan, this could be it.

'E-nabling' Is Driving Marketing More Than Sales Departments

NEW YORK - January 21, 2003 - The most successful marketing departments are turning more frequently to the Internet to boost sales and find new customers for their products and services as market lifecycles shorten, according to an article in the current issue of Across The Board, The Conference Board magazine. A new report released today by The Conference Board finds that the introduction of new technologies in the past five years has had a bigger impact on the organization and processes of marketing departments than on sales departments. The report is based on a survey of 80 senior marketing, sales, and information technology executives worldwide.

The new word for what is happening is "E-nabling" - the implementation of digital and communication technologies such as the Internet, Intranet, and Worldwide Web to improve business performance and allow the organization to operate in real time. E-nabling has increased the speed of communication within organizations and between their markets and has flattened organizations.

E-nabling has had a greater impact on the marketing department (65% report changes to marketing) than the sales department (48%), largely because of the greater centralization of the marketing function and the greater independence of the sales organization.

"Firms citing success in e-nabling are those that are close to their customers," says Thomas Bodenberg, author of the report and founder of The Conference Board's Council on Corporate Brand Management. "They are able to anticipate changes in their customers' operations and processes so as to mirror those processes in their own firms." The report costs $140.00. ...The Conference Board

Editor's comments:- I think it's great that people are still able to invent new "e-words". It's more difficult than you might think. Looking ahead, a reference article on the marketing problems associated with company and product naming will be appearing here soon.

Directory of Independent Press Association Membership is Now On-Line

San Francisco - January 14, 2003 - In conjunction with the 1st Annual IPA Convention, the Independent Press Association (IPA) has launched an on-line, searchable, annotated directory of the IPA membership. The directory surveys a deep and wide cross section of the independent press in the United States.

Major sectors of the independent press are included: ethnic, business, religious, social, cultural, alternative, fiction, and more. Entry annotations for each publication provide a short essay the on the history and editorial mission of the title, contact information, publication format and language, circulation region, circulation mode, and distribution frequency.

Sample topic categories include: arts and culture, business and economics, ecology and environment, education and schooling, ethnic/community/immigrant (with 20 sub-categories), fashion and style, parenting and family, peace and militarism, race relations, religion and spirituality, rural issues, science and technology, sex and sexuality. There are 39 major topic categories as well as additional subcategories and over 400 Publications. ...IPA

Editorial Calendars: A Key to Publicizing Your Business

January 14, 2003 - by Bill Stoller Founder, PublicityInsider.com

What is the one thing that all of the best public relations agencies do every year?

They research and compile editorial calendars from publications that are pertinent to their client's business. You should too.

What's an editorial calendar?

Editorial calendars are schedules of what topics a publication plans for cover for a particular month. For example, the INC. editorial calendar for July 2003 states that they're writing an article on various business services. Bingo!

If you feel that you can contribute to this particular topic, call or email the editorial department at INC. (try to "speak" to the managing editor) and find out who (which reporter) has been assigned to write the story. Email or call the reporter and explain how you can contribute. It's that simple - it takes less time than writing this article - and is much more effective than blast-faxing a garbage bound press release to inappropriate reporters.

Final thoughts: Many publications post their editorial calendars on their Web sites - usually they're found in their advertising media kits. Otherwise, contact the publication's advertising departments and ask for a calendar. Check for editorial deadlines - many publications work 6 months in advance. ...PublicityInsider.com

Editor's comments:- as a directory publisher ACSL's content, like many web media, is not constrained by the production and distribution process associated with print. All our content is viewable all the time. New content is added daily. So we don't have an editorial calendar. But that's unusual.

See also:- Bill Stoller's article:- 7 Tips to Get More Mileage out of Your Online or Offline Publicity


Life in the Channel is Long - Harte-Hanks Study Reveals

LA JOLLA, CA - January 13, 2003 - A new study by Harte-Hanks, Inc. reveals new findings about the importance of channel selling, and its strength and resiliency in the recent tech spending slowdown. The study was based on 16,838 in-depth interviews completed during the past 15 months with companies that act as channel partners for technology organizations. Interviews were conducted with VARs, ISVs, OEMs, dealers, distributors, service providers, systems integrators, and other resellers. Among the findings:
  • There is longevity among channel sellers in the technology sector. A full 95% of interview participants represent companies that have been in business for more than five years, with nearly 40% in business for 20 years or more. Despite the volatile nature of the technology sector in recent years, there appears to be marked stability among channel resellers.
  • The top industry sectors served by channel selling include healthcare, government, finance, education, and manufacturing.
  • Channel sellers in the tech sector rely twice as much on business-to-business e-commerce to drive sales compared to companies across all industry segments combined. 18% of channel respondents report at least some percentage of revenue attributable to e-commerce/Internet sales.
  • 70% of channel participants derived at least half their revenues from small and medium businesses.
The Harte-Hanks Channel Database is designed to enable technology marketing organizations to segment, manage, monitor, and leverage existing and potential channels. It also seeks to enable better matches between sellers and channel partners, increasing the likelihood of predicting partner success. Full results of the report on these in-depth interviews can be obtained by calling Harte-Hanks at (800) 854-8409. ...Harte-Hanks

European Web Hosting Market Slows But Demand Continues, Says IDC

LONDON - January 9, 2003 – According to IDC's latest research, the managed Web hosting market in Western Europe will grow from $1,942 million in 2001 to $5,556 million in 2006, representing a CAGR for 2001 to 2006 of 23%. The hosting industry is consolidating and there is a current steady stream of closures, bankruptcies and acquisitions. Most hosting facilities will remain operational and customer-ready, but overall capacity will decrease significantly as excess capacity is removed from the market. UK and German companies continue to dominate the European hosting market, accounting for 60% of spending on managed Web hosting services in 2002, declining to 56% by 2006. Similarly, large companies with over 250 employees accounted for 62% of spending in 2002, declining to 52% by 2006.

"The hosting market has certainly slowed down during 2002, but from extremely high growth rates in previous years, " said James Eibisch, IDC Research Director for EMEA IP and Hosting Services. "Although companies' hosting budgets are currently tight, and some users are even moving hosting back in-house, demand is fundamentally strong despite the industry turmoil". He continued, "the growth in broadband access, content consumption and ecommerce is high and, despite individual cases of poor cash flow or unsustainable business models, will drive the need for robust, professional hosting services". ...IDC profile

The End of Advertising as We Know It

Editor:- January 8, 2003 - I love reading books, and spent a large part of the recent Christmas holiday period wading through piles of new books which I got as presents from my family. But I thought I might get a little restless, so I made sure to buy some books for myself. The most enjoyable one of these was:-

"The End of Advertising as We Know It" - written by advertising guru - Sergio Zyman. It's got 240 pages and was published in 2002 by John Wiley & Sons.

I've always been cynical about the major players in the advertising industry. This was the industry which happily warmed itself by burning through billions of dollars of dotcom investors' money with flagrant disregard of the consequences. One of which was the IT recession in 2000. But I'm not an advertising guru. I only operate in the narrow area of B2b web advertising - and there's more to advertising (and life apparently) outside that narrow domain.

Sergio's book is like a breath of fresh air. He thinks (like most of us) that advertising agencies are mostly useless, and are more interested in their own egos and winning awards then in getting more business for their customers. This book contains numerous wake up calls to anyone involved in advertising. The examples given of good campaigns and bad, are entertaining, informative and up to date. He's a very good writer, and if he wasn't one of the 20th century's top 3 advertising gurus, with better things to do, I can imagine him making a pretty good living out of writing books.

There were only a couple of sentences in the whole 240 pages that I didn't wholeheartedly agree with:- his analysis of Apple's role in the PC market (about which whole books have been written), and the role of focus groups... He's cynical about the value of professional focus groupies in consumer marketing. I don't know about consumer marketing, but I do believe that this has a role in B2b. Apart from those negligible quibbles - I would pretty much follow everything else he tells you to do in the book.

Sergio actually recommends that you should leverage what you've learned from reading his book, otherwise it's a waste of money. I've done that in two ways.
  • By using his quote in our advertising pages - "Simply put, the goal of advertising is to sell more stuff to more people more often for more money."
  • And by writing this review.

Targeting News Content with Banner Ads on STORAGEsearch.com

January 7, 2003 - ACSL, publisher of STORAGEsearch.com and MarketingViews announced today a new targeting option for advertisers which is triggered by news stories about related subjects.

Here's how it works:- let's say the advertiser wants to run a banner ad for RAID systems targeted at news stories about RAID. The banner ad would appear whenever a news story about RAID appeared as one of the top 3 visible news items on the STORAGEsearch - news page. The banner would also appear on the STORAGEsearch - home page. whenever the selected headline for that part of the day related to the targeted segment.

Targeted segments can be news items about products by competitors (or the advertising company), or market research about that product segment, or news about a new article which talks about that subject. In general, when the news story is visible on the users screen (is one of the 3 most recent news stories) - then the targeted banner ad will always appear. Because news stories occur randomly with market conditions ACSL expects that targeted time slots will typically last from 4 to 24 hours at a time. However the publisher will analyse historic data on news stories and current and projected reader size data and market trends to predict the annual banner impressions for the new targeting option.

News content targeting will be sold on an exclusive basis for each subject. The new package does not impact current targeting by content page, which ACSL has been selling since 1998, and companies who are advertisers (using other ad products) are always excluded from being targeted by a competitor.

"Advertisers have to think more about what's going in inside their customer's head" says Zsolt Kerekes, publisher. "If they're reading a news story about a particular subject and see an ad which relates to the same subject on a focused site which they came to seeking that kind of information that's a good time to get their attention. We've found that targeting by content and context has always been a very effective tool for our customers, because it ties in with what readers want to see. We've actually been targeting news stories with classified ads on an infrequent basis to increase stickiness for several years. The new approach is a logical progression to real-time content matched targeting."

The new package starts at $5,000 a year. For more information about Targeting News Content with Banner Ads email Zsolt Kerekes with details of the product or service which is being promoted.

The most important thing you should do in 2003

Editor:- January 3, 2003 - There's one useful thing you can all do do which doesn't cost any money, and needs no tools other than email and a web browser.

Check your company profile on the top directories in your industry, and if the text is more than a year old, or looks out of date, contact the publisher with correct information.

As an 11 year old IT directory publisher with titles including the SPARC Product Directory, and STORAGEsearch.com we generally update and correct company profile on a continuous basis every working day. But we rely on getting updated information from the companies for whom it matters most:- the original source themselves. It's in your interests to make sure that the way your company is represented in trade directories and the web accurately reflects your current business.

As a service to our readers, we started listed the date at which profiles were updated a few years ago to help them determine how accurate the information might be. But that signposting can be interpreted in more than one way. To our readers a listing that's maybe 2 or 3 years old indicates that the vendor company may be a little slack in its corporate communications, and may not be long for this world. Improving your image is quick and easy to do, and most publishers welcome getting updates at any time of the year. We automatically update company profiles from the news stories we run about companies, so that on average most current profiles are less than a year old. So older profiles also indicate to our readers that the company isn't doing anything newsworthy, or it indicates to me, that the PR process has failed in that company.

So at the start of the new year, before you get swamped by everything else, spend a few minutes on the web seeing how your company is seen by buyers in your market. If that information is wrong it will be harder and cost more for you to correct those misperceptions by anything you can do with advertising, mailshots and other promotions.

2002: the top ten in IT hype

January 2, 2003 - an article published today on ZDNet lists the top 10 hyped technologies and IT products in 2002.

today's news etc from MarketingViews
send press releases about high-tech internet marketing to news@MarketingViews.com

Other news on this page

Marketing Nomenclature, and the Naming of Names

Worse than the SQL Slammer: Thousands of Top UK Managers are Paralysed into Inaction this Week by Friday Tax Deadline

Missed Storage Visions 2003 Conference? Buy the Book

Thousands of Web Sites Affected by SQL Slammer Worm

Marketers Rediscover Real-Time Business Intelligence Tool from the 1980s - Say Hello to the Phone

Hearing the Voice of the Customer - When Budgets are Tight

The Next "Big Thing" in IT?

'E-nabling' Is Driving Marketing More Than Sales Departments

Directory of Independent Press Association Membership is Now On-Line

Editorial Calendars: A Key to Publicizing Your Business

Life in the Channel is Long - Harte-Hanks Study Reveals

European Web Hosting Market Slows But Demand Continues, Says IDC

The End of Advertising as We Know It

Targeting News Content with Banner Ads on STORAGEsearch.com

The most important thing you should do in 2003

2002: the top ten in IT hype

earlier news (archive)

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When Cheaperbyte's sales manager said he had to accelerate sales in 2003, he knew just the right way to do it.
Nibble: Is the External Disk Market Heading for a Crash?

T
wo recent market research reports got me questioning the validity of my own assumptions about the long term prospects for the that part of the storage industry which supplies disk based storage such as RAID, NAS, SAN etc. And I'm starting to feel a cold chill which has nothing to do with the seasonal weather.

First it was the December 6 news from IDC saying that worldwide disk storage systems factory revenue in the third quarter of 2002 was down 3% compared with the second quarter. "The failure to gain revenue momentum in Q3 is yet another indication that a rebound in the disk storage systems market is not imminent," said Charlotte Rancourt, research director of IDC's Disk Storage Systems program. "The third quarter is consistent with an emerging trend whereby growth in gigabyte per unit does not offset the unrelenting decline in dollar per gigabyte."

Then there was the December 10 report from Peripheral Research Corp saying that the demand for critical components for rigid disk drives hit a five-year low in 2002. "The industry has been on a 60-100% per year increase in areal densities, which by nature reduces the number of Magnetic Heads and Disks in each drive... The demand for Rigid Disk Drives has flattened out to about 195 million units per year for the past three years." This report went onto say that growth in demand for disk drives in consumer products would eventually lead to growth in overall disk shipments, but that doesn't affect the computer market which we're discussing here.

Let's recap on the two main reasons that so many computer companies flocked into the storage market in 2000 and 2001 during the recession in the PC and server market.

The first, was a widely held belief supported by direct experience, and codified in a widely publicised EMC sponsored research study saying that the demand for storage capacity would double every year. The second factor was the growth and profitability of EMC back in 2000. Both factors, taken together suggested to many oems, that here was a market which was ripe and growing, and in which there plenty of opportunity for efficient low cost producers to make higher profits than in the PC market by undercutting the fat dumb and happy market leaders. News travels fast in this wired world. So hundreds of companies had exactly the same idea.

But what if these assumptions are wrong? Or don't give the whole picture? What if an annual doubling in demand for disk storage doesn't actually lead to any increase in storage revenue? And what if an overcrowded market of EMC wannabes leads to the same fierce competition and pricing models seen in the PC market? That's good for users but spells ruin for many storage oems.

In the semiconductor world Moore's Law has reliably predicted the shrinking geometry of chip and the growing density of memory for 3 decades. There isn't an equivalent in the disk storage world. But looking back at the last 10 years, disk drive capacity has increased by a factor of 1,000, which means that on average it's doubled every year. So even if demand for storage is doubling, there's no compelling reason for the market to increase in value. In fact, if you take into account the new wave of intelligent archiving software from companies like Princeton Softech there are optimistic grounds for believing that users will be able to keep a lid on runaway storage growth by using more compression and faster intelligent archiving based on data usage patterns.

If disk storage technology keeps improving, users could end up paying less for their storage networks in the long term, instead of more. Now there's an interesting thing to think about as we ponder what the new year may bring.

See also:- ...EMC profile, ...IDC profile, Market research, ...Peripheral Research profile

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