Scarcity and Choice

The Web as a Sales Tool

There is discussion today about how beneficial the Web is as a sales tool. Many companies, even those with a tremendous presence on the Web, are not making a lot of money. They are positioning themselves for the future, with hopes that buying on-line will become an everyday event.

The question that must be answered is whether the World Wide Web will remain a place of information, or evolve into a profitable marketplace for businesses.

Actually, if you trace the history and growth of the Internet, you will realize that extraordinary progress has been made. In the last decade, the number of personal computers has multiplied to the point that potential sellers of products and services now see tens of millions of customers to whom they can market their products. As consumers become more relaxed and secure about buying on-line, market potential will rise. Because of this potential, banner ads are everywhere: on Home Pages, magazines or “webzines”. “Cyberstores” offer everything from automobiles to vacation cruise.

The most successful sellers are those that mainly transact business by phone, selling a product that does not have to be present physically. If you know the title or the author of a book you want to buy, it is easier to order it by computer than to go to the bookstore. Besides, you may get a discount, or save sales tax, even though you have to pay for shipping.

An example of growing use of Web technology is the “Extranet”, which is a company’s private link with its corporate customers. (The “Intranet” is the company’s internal network with its employees.) General Electric, the most successful example of extranets, grosses over a billion dollars a year in sales.

Notes:

to remain – оставаться

to transact – вести переговоры

link – канал связи, связующее звено

Unit 5