At its most basic, “space” marketing simply offers your customers more than one channel to purchase your goods or services – through a retail establishment, a Web site and a catalog, for example. But harnessed properly, multichannel marketing does much more. It provides a business with more opportunities to interact with customers and potential customers. And those interactions can generate a closer relationship and more business with customers, as the messages in each channel reinforce the other channels. In fact, customers of multichannel companies spend 30% more than customers of one-channel companies.
This essay reviews “space” and “place” marketing and how customers can move from one to another. Examples are further given of organizations who have managed to create transparency between the two.
Market space can be defined as a second, parallel world where buyers and sellers may never meet and the goods and services may be delivered in a different way than in a traditional setting. One example that makes definitions of place and space clear is when banks provide services to customers at branch offices (i.e., the market place) and when customers use banks’ electronic online services (i.e., the market space). (Sviokla & Rayport, 1995) conclude that “to succeed in this new economic environment, executives must understand the differences between value creation and extraction in the market place and in the market space: they must manage both effectively and in concert.” Background and significance
The World Wide Web was invented in 1989 by Tim Berners-Lee (Barnes-Lee, 2000, para. 1). He started a whole new way of doing things in business. Companies now can use the power of the internet to sell their products. Today thousands of sites can advertise their goods on websites such as Myspace, Facebook, and such search engines like Google. Many of these sites offer free advertising, which is even better for the companies because there is no cost involved. Sponsored searches and online advertising are amazing marketing tools with clear advantages for brand building and driving both on- and offline sales. These new tactics that companies are using are and can have a huge impact on their profitability. E-commerce grew rapidly in the last decade in areas such as electronic buying and selling, in electronic markets for various products, and in the use of intelligent agents for commerce, as predicted by (Malone, Yates, & Benjamin, 1987). But the recent failure of Internet companies has made both researchers and academicians wonder about which business models will lead to sustainable competitive advantage in the digital economy. . Managers of brick-and-mortar companies who now have come to understand the importance of e-business, but are not quite sure how to migrate from their existing business models to a combination of bricks-and-mortar and the Internet. Weill and Vitale (2001) express concern for the senior managers of “old economy” companies who have pressure from all sides: from investors, stock market analysts, employees, customers, suppliers and competitors to migrate from market place to market space. Place vs. space
When comparing traditional business to e-business, one can see several differences between the two. The most obvious difference when buying standard goods (such as a toaster, a book, or a new computer) is the store. When dealing with e-business there is no "real" store or merchandise to look at. It is all presented through the merchant's webpage, or by other electronic means. You will not be able to touch, or inspect potential purchases. All you will have to go on is perhaps a picture and a brief description of the item in question. This is obviously a big change from traditional store-based business practices. Why would any self-respecting consumer buy something via e-business if they were unable to touch, or...